Learning, innovation and competitive advantage in not-for-profit aged care marketing: A conceptual model and research propositions

The rapid worldwide shift in the age structure of populations, with significant ageing, has resulted in the creation of a significant market segment with a need for aged care. The rapid expansion of a market base who typically have relatively high discretionary incomes, increased government funding and entry of commercial providers, have forced the traditional Not For Profit (NFP) providers to closely scrutinize their aged care strategies. The extant NFP literature is fragmented, and the role of organisational innovation, in gaining sustained competitive advantage in NFPs, has not received adequate attention. The marketing literature has focused on new product development of physical goods but this literature is generally silent on the integration issues of learning from the market and enfolding innovation in both service and physical goods, into the value chain for competitive advantage. This paper addresses these issues and models the antecedents of innovation-based competitive strategy in NFPs. Premised on the capability-based model of sustained competitive advantage; a framework is presented that examines the role of learning capabilities in innovation-based competitive strategy in NFPs. It is proposed that successful, entrepreneurial NFP organizations, with a mission to create social value for multiple stakeholders, build and nurture distinctive capabilities by learning both from the market and other sources. Key theoretical constructs within the model are explored, research propositions are presented and operationalisation issues are discussed.