Haksan Ltd. has been growing continuously while Korean footwear industry declining over the past few decades. An in-depth case study reveals that Haksan developed core competitions in competitive R&D functions, which lead to a strong bargaining position within footwear business ecosystem. Haksan has procured and outsourced other functions, such as visual product design, manufacturing, sales & distribution, material development, through unique and various collaborative relationships with subcontractors and professional organizations outside the firm. From the Haksan’s case, we can find that formation and change of network organizations should be explained in relation to business environment, competitive strategies, organizational capabilities and organizational structures. This case can offer practical insights to managers in the footwear industry, especially for small-and- middle sized firms planning organizational change and corporate strategies. It can also contribute to organization theory, strategic management, entrepreneurship, and technology management.