Co-creational leadership capability for driving health-care service innovation

Purpose The purpose of this paper is to identify and explore leadership capability for driving value co-creation in health-care service innovation. The leadership theories developed for leading within organization boundaries can no longer apply when customers and multiple participants are collaborating for innovative services. This study uses the dynamic capability theory to identify leadership capability that supports value co-creation in health-care service innovation. Design/methodology/approach Two case studies of Australian mental health organizations are used to identify co-creational leadership capability. These organizations have successfully embedded co-creational leadership capability in organizational systems and structure as the dynamic capability. Findings The study is among the first one to identify the leadership capability from a service-dominant logic perspective. Drawing from dynamic capability theory, six characteristics of co-creational leadership capability are identified, namely, creating a combined world view, creating a shared vision, facilitating an environment of trust, facilitating knowledge creation and knowledge sharing, empowering choice and facilitating collaboration. Originality/value This research has extended the leadership and the value co-creation literature by identifying co-creational leadership capability to drive value co-creation agenda for improving organizational results and performance.