ABSTRACT
This research aimed to analyze the effect of relational social capital on performance of small and medium-sized enterprises with innovation capability as the mediating variables. The sample of this research was the cluster pattern of SMEs in the export-based brass industry in the Central Java region. The unit of analysis that was carried out was the SMEs owners. Furthermore, the sample of this research comprised 200 respondents. The results of hypothesis testing used the Structural Equation Modeling (SEM) approach with the AMOS program. The results of this research showed that the social-relational capital significantly affected SME performance and innovation capability. This research also empirically found that innovation capability can mediate the relationship between social-relational capital and SME performance.
