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pp.848-854
This study examines the persistent decline of the motorcycle industry despite governmental interventions, using the perspective of path dependency. Drawing from W. B. Arthur's concept of 'Lock-in by insignificant historical events', the research delves into the lock-in phenomena within the industry's life cycle. We identified path dependency lock-in categories: contingency, historicity, and technological lock-in. The industry's licensing production method during its embryonic phase led to limited technological capabilities, establishing a technological path dependency. During the currency crisis and in alignment with China's open-door policy, the industry chose to import cheaper components, opting for economies of scale over technological innovation, intensifying the lock-in. Furthermore, the classification of motorcycle as a free industry before the currency crisis resulted in a lack of governmental support. This neglect has continued, with even modern electric motorcycle facing regulation. In conclusion, to overcome this entrenched path dependency and lock-in, significant governmental policy restructuring is essential.
