Urbanization is a persistent phenomenon. As cities have expanded, so has the demand for government ability to provide better infrastructure and public services. The “smart city” concept may form a response to these urban challenges. From a business point of view, incorporating digital technologies to address some of the city’s sustainability challenges is a means to create business opportunities for firms. However, a smart city project is complex, and it requires firms interaction with government and civil society. Hence, the aim of this chapter is to understand how firms manage their relationships with sociopolitical actors in projects for smart city development and how socio-political actors can be a source of competitive advantage. These questions will be answered by applying business network perspective within cross-sector partnership in the context of firms operating in Brazil. The study contributes to a foundation for a better discussion among policy makers and practitioners about promoting inter-organizational cooperation in projects with a social purpose.