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Managing a supply-chain based two-sided market

Managing a supply-chain based two-sided market

Rong, Ke, Liu, Taoxiong and Lin, Yong ORCID: 0000-0001-7118-2946 (2016) Managing a supply-chain based two-sided market. In: Academy of Management Proceedings 2016. Academy of Management. ISSN 0065-0668 (Print), 2151-6561 (Online) (doi:

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This paper develops a theoretical model of positive monopolist who organizes a two-sided market in the IP license industry. This model indicates, as a platform owner, they faced a new phenomenon that developers’ side acts as a supply chain of firms instead of single firm. They have to deal with network effect between developers and customers, but also within the supply chain. We have developed models by adopting license fee and royalty fee to facilitate such network effects among supply chain and customers in the platform ecosystem. This article specifically enriches the two-sided platform by introducing supply-chain based side. Some practical implications also provide for platform owners who want to set up their platform ecosystem by licensing their IPs. This result could also be able to explain why Intel adopted a close supply chain in the PC industry while ARM adopted an open platform model in the mobile industry as a positive monopolist.

Item Type: Conference Proceedings
Title of Proceedings: Academy of Management Proceedings 2016
Additional Information: Meeting Abstract Supplement
Uncontrolled Keywords: Business ecosystems; Two-sided market; Network effects; Supply chain based platform; IP license model; Mobile Computing Industry; Positive Monopoly
Faculty / School / Research Centre / Research Group: Faculty of Business
Faculty of Business > Department of Systems Management & Strategy
Last Modified: 31 Jan 2017 12:22

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