Leveraging platform intermediaries for licensing in technology-intensive supply chains with network effects

We examine a technology firm's licensing choices, with or without a platform intermediary, in a market with two competing manufacturers. We analyze how market conditions influence the technology firm's decision, considering its ability to enhance product quality and network effects. We find that licensing through the platform intermediary is beneficial across a wider range of network effects when the gap in the manufacturers' capabilities narrows. Furthermore, this approach enables higher profitability with less effort in certain market conditions.