%0 Journal Article %T How Relational Capabilities Matter? Organizational Context and Performance of Internationally Oriented SMEs %A Mariola Ciszewska-Mlinari£¿ %A Prof. Krzysztof Ob£¿¨®j %A Franjo Mlinari£¿ %J Central European Business Review %D 2012 %I University of Economics, Oeconomica Publishing House %X The article sheds light on the organizational context enhancing development of relational capabilities and examines the significance of relational capabilities for SMEs¡¯ financial and non-financial performance. The firm relational capability is measured separately in customers¡¯ and suppliers¡¯ networks. The research results reveal that fostering internal social capital coupled with the usage of economic motivators augment a firm relational capability in a supplier network, which in turn is associated with better performance results, both financial and non-financial. The results on relational capability in a customer network with respect to performance are less conclusive, indicating that vertical ties that internationally oriented SMEs develop (with suppliers and customers) are not of equal importance. %K relational capability %K vertical ties %K performance %K SME %U http://cebr.vse.cz/cebr/article/view/25