In the 'Network' model, firms form collaborative, long-term relationship with each other. There are constant interactions among the members of the network leading to beneficial strategic outcomes. The paper presents the findings of case studies of two Malaysian firms and their suppliers. The findings indicate that firms in a network exhibit strong interdependencies and these interdependencies are coordinated through a number of devices to achieve concerted actions. The underlying objective for establishing networked relationships is to achieve a negotiated and predictable environment within which the exchange relations take place. The findings also indicate that the two lead firms examined achieved several benefits from their membership of the network. In addition it was found that the relationships among network members can be further strengthened through constant social interactions to facilitate the collaborative processes.