Abstract: Innovation is important for the way the SMEs respond to the changes in the business environment. This study analyses the influence of three strategic orientations that are identified as internal capacities in the theory on the subject (market orientation, entrepreneurial orientation and learning orientation) on innovation and the impact of this capacity on organizational performance among 400 Mexican SMEs. These relations have not been studied in the context of an emerging country. Through structural equations, the results show the positive relationship of the entrepreneurial orientation and learning orientation on innovation as well as the positive influence of innovation on the performance of the SMEs, however, there is no evidence of the positive influence of market orientation on innovation.