Purpose Despite growth in use of inter-organisational relationships for knowledge co-creation, many collaborations struggle to realise the synergistic benefits of these networks. This research explores the evolving dialectic tensions evident within an inter-organisational relationship and the governance consideration to optimise the knowledge process. Design A longitudinal case of a university-industry knowledge network is selected for study. The single case analysis aligns with the dialectical epistemology, which dismisses the expectation of homogeny or constancy across network cases. Findings The research highlights the dialectic tensions evident within inter-organisational relations and the governance mechanisms developed to synthesis the network knowledge discovery capability. The research shows that these tensions are a natural part of network existence and often advantageous to knowledge creation. The research also highlights that governance is required at multiple levels within the network in order to optimise knowledge exchange and discovery. Originality The research adds to the limited application of dialectical thinking to inter-organisational networks. It highlights the structural and relational governance mechanisms that interact to optimise their knowledge process capability. It shows the multiple levels within networks at which tensions can originate, requiring knowledge governance at the micro, meso and macro level to address the complexity of the interorganisational relationship. This research provides a better understanding of how knowledge within interorganisational relations can be managed for mutual benefit and value creation.