The development of bicycle industry in Taiwan has been nearly 70 years. There is complete upstream, midstream and downstream supply system. By the development of innovative models, construction of brands and prominent quality, the industry is important in global market. Bike industry, among traditional industries in Taiwan, is one of the most successful transformed. The R&D of the industry is still based on small and medium enterprises which encounter the pressure of competition. This study

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... system dynamics methodology to propose a causative relationship model for the bicycle industry in Taiwan to explore its system behaviors. According to research, development of bike industry in Taiwan is mainly influenced by four key levels, including causal loop of human resource level and production quantity level, causal loop of consumers' purchase intention level and causal loop of sales quantity level. They are closely related to each other and have causal relationship. Discussions are presented systematically, based upon the causative model.