Despite the importance of strategic orientations and relational capital in businesses, little research has been carried out on the relationship of these factors with the innovation process. Nor has the behavior of strategic orientations been sufficiently studied if we measure them together. This paper examines the relationship between those factors with firm performance. We propose relational capital as a source of innovation for small- and medium-sized enterprises (SMEs) through strategic orientations. Therefore, this study contributes to advanced knowledge in the SMEs competitive research stream. A total of 360 respondents completed a survey conducted at four main cities in México. Using the structural equation modeling (SEM) technique, our results reveal a strong positive effect of relational capital over strategic orientations. Mixed findings of strategic orientations and innovation are presented. The findings offer managerial insights for managers to improve performance through innovation and strategic orientations using relational capital.