The purpose of this paper is to explore the rationale for the lack of growth in the two‐wheeler service sector despite an exponential growth in the number of two‐wheelers on Indian roads.
The data of a premier manufacturer were gathered to develop a system dynamics model. Policy experimentation was carried out after validating the model.
The results corroborate that a mere increase in the number of facilities is inadequate for sustainable growth. Improving service quality is vital for sustainable growth of the service sector.
The system dynamics model unveils facts that otherwise would remain obscured. It is very useful for real‐world managers in carrying out policy experimentation to understand the effect of one variable on the other. Managers can design effective policies only through double‐loop learning.
The complexity of the system increases as the business grows. Managers need to adopt double‐loop learning to achieve true growth in capacity, revenue, and the bottom line. The paper demonstrates the essence of double‐loop learning in the two‐wheeler service sector.
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