This study proposes an analytical framework for explaining the change of formal institutions by utilizing the concepts of path dependence and ideas from new institutionalism. Text mining techniques were used to analyze the case of ride-sharing service...
This study proposes an analytical framework for explaining the change of formal institutions by utilizing the concepts of path dependence and ideas from new institutionalism. Text mining techniques were used to analyze the case of ride-sharing service regulation. This study examines how path dependence manifested during the revision of the Passenger Transport Service Act, and identifies the actors' ideas that emerged during the regulatory change process.
Based on the research results, implications for institutional change are presented.
The core issue of regulatory reform was whether a new form of business would bring about a significant change in the order of the existing taxi business. This suggests that the regulatory framework may not change significantly unless there is a fundamental change in the goals, means, and target groups of regulation in the path-dependent process. Nevertheless, the innovative idea of platform-based transportation was able to be incorporated into legal framework. The study shows that the adoption of innovative ideas can vary depending on how actors define the nature of the problem and who can participate in the decision-making process.
The study also confirms that the adoption of a new path is possible when actors approach the existing regulatory target group with a symbiotic relationship