This paper addresses capability development in a cross-level context by showing how inter-organizational capabilities may be developed for the purpose of intra-organizational strategic actions. It contributes by addressing the micro process through which middle managers develop capabilities to engage in relationships and activate networks, and in how such capabilities can be used for intra-organizational purposes. A longitudinal case study based on participating observations, informal talks and interviews, illustrates how an external network, made up by sub-units of larger organizations, was created and how the resulting network capabilities and shared knowledge could be leveraged into strategic processes of issue-selling in the intra-organizational context.