Abstract: This study about the relationship between supply chain partnership, supply chain capability and supply chain performance in the context of Small and Medium companies (SMEs) of service sectors in Yogyakarta, Indonesia. Data were collected use questionnaire and analyzed use SmartPLS. Results of the study are relationships between supply chain partnership and supply chain performance is not significant but supply chain partnership to supply chain performance is mediated by supply chain capability and supply chain capability to supply chain performance is positive and significant.