Set up to fail: Explaining systemic problems in the business model of in-home aged care

Lewis, RL; McAllister, G; Brown, DA; Rawlings-Way, O; Sutton, NC; McEwen, C; Parker, D; Ma, N

Set up to fail: Explaining systemic problems in the business model of in-home aged care

Lewis, RL McAllister, G Brown, DA Rawlings-Way, O

Sutton, NC McEwen, C

Parker, D

Ma, N

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Publisher:: SAGE PUBLICATIONS LTD
Publication Type:: Journal Article
Citation:: Australian Journal of Management, 2025
Issue Date:: 2025-01-01

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Field	Value	Language
dc.contributor.author	Lewis, RL
dc.contributor.author	McAllister, G
dc.contributor.author	Brown, DA
dc.contributor.author	Rawlings-Way, O https://orcid.org/0000-0003-3649-528X
dc.contributor.author	Sutton, NC
dc.contributor.author	McEwen, C https://orcid.org/0000-0002-3121-5114
dc.contributor.author	Parker, D https://orcid.org/0000-0003-2552-8613
dc.contributor.author	Ma, N https://orcid.org/0000-0002-0341-1003
dc.date.accessioned	2025-03-26T04:55:22Z
dc.date.available	2025-03-26T04:55:22Z
dc.date.issued	2025-01-01
dc.identifier.citation	Australian Journal of Management, 2025
dc.identifier.issn	0312-8962
dc.identifier.issn	1327-2020
dc.identifier.uri	http://hdl.handle.net/10453/186219
dc.description.abstract	We seek to explain the role of external environmental constraints in embedding systemic problems within a dominant industry business model. Using qualitative data from the 2019–2021 Australian Royal Commission into Aged Care Quality and Safety, we show how three sector-wide constraints – channel constraints, revenue constraints and resource constraints – impinge on the business model for in-home aged care services, creating direct, first-order effects by embedding systemic problems directly within business model components. We also explain how second-order effects occur through interdependencies with other business model components. We discuss the consequences of our findings for value creation and value capture, and the implications for the delivery of quality care to older people. Through this analysis, we also contribute to the business models literature by extending our understanding of the impact of external factors on business model performance, innovation and managerial choice. JEL Classification: L2 - Firm Objectives, Organization, and Behavior, M4 - Accounting and Auditing, I11 - Analysis of Health Care Markets.
dc.language	English
dc.publisher	SAGE PUBLICATIONS LTD
dc.relation.ispartof	Australian Journal of Management
dc.relation.isbasedon	10.1177/03128962241309407
dc.rights	info:eu-repo/semantics/openAccess
dc.subject	15 Commerce, Management, Tourism and Services
dc.subject.classification	35 Commerce, management, tourism and services
dc.title	Set up to fail: Explaining systemic problems in the business model of in-home aged care
dc.type	Journal Article
utslib.for	15 Commerce, Management, Tourism and Services
pubs.organisational-group	University of Technology Sydney
pubs.organisational-group	University of Technology Sydney/Business School
pubs.organisational-group	University of Technology Sydney/Business School/Accounting Discipline
pubs.organisational-group	University of Technology Sydney/Faculty of Health
pubs.organisational-group	University of Technology Sydney/Faculty of Health/School of Nursing and Midwifery
pubs.organisational-group	University of Technology Sydney/UTS Groups
pubs.organisational-group	University of Technology Sydney/UTS Groups/UTS Ageing Research Collaborative (UARC)
pubs.organisational-group	University of Technology Sydney/UTS Groups/INSIGHT: Institute for Innovative Solutions for Wellbeing and Health
pubs.organisational-group	University of Technology Sydney/UTS Groups/Centre for Health Technologies (CHT)
pubs.organisational-group	University of Technology Sydney/UTS Groups/Family and Domestic Violence Research Network
utslib.copyright.status	open_access	*
pubs.consider-herdc	true
dc.rights.license	This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License (CC BY-NC 4.0). To view a copy of this license, visit https://creativecommons.org/licenses/by-nc/4.0/
dc.date.updated	2025-03-26T04:55:20Z
pubs.publication-status	Published

Abstract:

We seek to explain the role of external environmental constraints in embedding systemic problems within a dominant industry business model. Using qualitative data from the 2019–2021 Australian Royal Commission into Aged Care Quality and Safety, we show how three sector-wide constraints – channel constraints, revenue constraints and resource constraints – impinge on the business model for in-home aged care services, creating direct, first-order effects by embedding systemic problems directly within business model components. We also explain how second-order effects occur through interdependencies with other business model components. We discuss the consequences of our findings for value creation and value capture, and the implications for the delivery of quality care to older people. Through this analysis, we also contribute to the business models literature by extending our understanding of the impact of external factors on business model performance, innovation and managerial choice. JEL Classification: L2 - Firm Objectives, Organization, and Behavior, M4 - Accounting and Auditing, I11 - Analysis of Health Care Markets.

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10453/186219