ABSTRACT
This paper aims to examine the effect of cultural relational cap- ability, managerial systems relational capability, value co-creation activities on business performance. The respondents are the own-ers of fashion retail SMEs in Indonesia. The data was processed by using Structural Equation Modeling. This study found that cultural relational capability and managerial systems relational capability have a significant effect on value co-creation activities and busi-nes performance. Furthermore, value co-creation activities can be a mediator of the relationship between cultural relational capability and managerial systems relational capability on busi-ness performance.