Regulation Concepts for Disruptive Innovation: New Policy Perspective for Online Transportation Industry

Mukti Fajar, Dyah Mutiarin, Reni Budi Setianingrum
International Journal of Economics and Business Administration, Volume VIII, Issue 4, 223-237, 2020
DOI: 10.35808/ijeba/582


Purpose: The research aims to examine the legal concepts of business that interfere with innovation in legal competition in transportation and the management model of online transportation industry governance. Design/Methodology/Approach: The research method uses normative legal research with laws, theories, and legal principles through library research. To complete the data, this research also conducts interviews with experts, stakeholders and government officials. Findings: The findings reveal that first, the disruptive innovations in the online transportation business do not conflict with the principles of business competition law, but it needs to be arranged differently. Second, the online transportation policy model requests a combination of self-regulation and strict regulatory policies. The mixture will protect unhealthy businesses, providing consumer protection and safety, and security providers in online transportation business. Practical implications: The combination model of self-regulation policy and hard regulation policy may bring innovation in online transportation regulation policies. Originality/Value: This research proposes feasible policies in regulating the business of conventional transportation and integrated online transportation.

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