Social Networks, Innovation, and the Performance Disconnect in Elderly Care Enterprises: Evidence from Beijing
Hongyan Zhao | Carina Raylos | Mary O’ Penetrante
Discipline: Sociology
Abstract:
This study investigates the influence of social network experience and business innovation on the performance of elderly care enterprises in Beijing. Drawing on Social Capital Theory and Resource-Based Theory, data were collected from 306 managers across elderly care institutions and analyzed using descriptive and inferential statistics. The findings reveal a “performance disconnect”: while business innovation particularly in value proposition was positively associated with market responsiveness and organizational vitality, it showed limited impact on profitability and customer retention. Similarly, social network experience across dimensions of reciprocity, centrality, and reliability demonstrated no significant correlation with performance outcomes. Smaller and newer enterprises exhibited weaker alignment between experiential knowledge and key performance indicators. These results underscore that while relational and innovative capacities are present, they are not fully operationalized into strategic advantage, especially in resource-constrained settings. The study highlights the need for systemic integration of experiential inputs and recommends targeted innovation strategies, enhanced capability building, and adaptive policy support to bridge the gap between innovation efforts and tangible enterprise outcomes in the elderly care sector.
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