The aims of this research is to contribute to the literature and the conceptual model of the effect of relational capital on network advantage and business performance, the effect of network competence on network advantage and business performance, the effect of knowledge sharing on network advantage and business performance and the effect of network advantage and business performance. The number of samples in this study examined was 289 sample SMEs Furniture on Central Java Indonesia. The purposive sampling technique was used to the data collection methods. The results of this study showed that relational capital is a significant negative effect on business performance and positive significance on network advantage. Network competence is a significant effect on business performance and negative impact on network advantage. Network competency is a significant effect on business performance and network advantage. Relational capabilities is a significant effect on business performance and network advantage. Network advantage is a significant effect on business performance.