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To gain a better understanding of various network relationships in the software industry by classifying relationships by type and identifying distinctions with respect to the business potential of those relationships.

On the basis of literature, the study presents a framework for the tasks of combining and exchanging knowledge‐based resources in network relationships. In the empirical research setting, the relationships of nine Finnish software firms are first classified and placed in the framework, and then the organisational effectiveness of the relationships is measured.

The findings reveal three relationship types, each leading to different effectiveness profiles.

It is recognised that this exploratory multiple‐case study raises the concern of generalisability and, thus, a statistical research using more accurate quantitative methods could be useful in checking the validity of the findings. Further, the selected cases exclude non‐networking companies, which is why future researchers may wish to consider whether the conclusions are valid across all firms and not just for those already in relationships.

A very useful information for new software firms having and planning partnerships in the software industry. For a new venture with limited resources, in particular, the partnerships may offer valuable resources. The study advances the identification of those benefits.

This study extends the understanding of management in strategic networks, particularly in the software industry, by classifying network relationships by type, describing the potential of these relationships, and indicating the capabilities needed for managing specific types of relationships.