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This paper analyzes the capability building and competitive advantage enhancing process in the environment of strategic networks. Network resources are competitive strengths originated in strategic networks and can be divided into accessed resources and embedded resources according to their location and ownership. Our framework suggests that the competitive advantage rested on the distinctive processes (combination, leverage and joint action) based on firms' internal and external resources. The beneficial effects of network resources can be classified into four kinds: scale effects, scope effects, spillover effects and learning effects. Relational governance plays an moderating role in this capability building process.