How Dealer Characteristics Moderate the Impact of Government Policy on Electric Vehicle Adoption in Indonesia?

This study investigates how dealership characteristics moderate the relationship between government policy and electric vehicle (EV) adoption in Indonesia. Anchored in Institutional Theory and Supply Chain Theory, the research proposes a multi-tiered framework that traces how government support affects dealership transformation through distributor engagement and head office capabilities. The analysis is based on survey data from 140 automotive dealerships across various brands in the Indonesian passenger vehicle market, including Japanese brands, Korean brands, Chinese brands, and Western brands, representing structured distribution systems. The findings are relevant to broader EV transition dynamics across emerging markets. Structural equation modeling shows that government support significantly drives distributor coordination and internal capability development, particularly in human resource and financial support, which in turn foster transformational leadership at the dealership level. Subgroup analysis reveals that dealerships with mid-level organizational age, BEV specialization, non-mainstream branding, and locations outside Java are more responsive to institutional incentives. These results highlight the importance of aligning policy interventions with internal dealership readiness and contextual characteristics. The study offers both theoretical contributions to institutional adaptation and practical insights for policymakers and industry stakeholders seeking to accelerate EV adoption through dealership transformation in complex supply chain environments.