Abstract

Many countries face a growing crisis due to expanding aging populations which are creating major resourcing problems. This study examines the influence of government regulated “franchising” of residential care provider licenses on the governance processes, entrepreneurial orientation, and innovation performance of Residential Elderly Care Organisations (RECO). We examine the relevance of two theories (normalization process theory, NPT of complex interventions and agency theory) to better understand the social and economic regulation of government regulated franchises. NPT identifies factors that promote and inhibit the routine incorporation of complex interventions into everyday practice such as accreditation, quality audits, financial audits, and provider licenses. It also explains how these interventions work, looking not only at early implementation, but beyond this to where an intervention becomes so embedded into routine practice that it is normalized or “disappears” from view. On the other hand, agency theory is concerned with exchanges in which one party (the principal) delegates responsibility for a specific set of actions to another party (the agent).

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