The purpose of this paper is to theoretically examine the concepts of Innovation In External Relations and New Product Development Capability, and to propose a conceptual model through the improvement of New Product Development Capability and its effect on the marketing performance of Ulos Simalungun craftsmen. This paper approach is a dimensional approach, conducting an assessment. to the variable dimensions contained in New Product Development Capability and Innovation In External Relations. A conceptual model of Innovation In External Relations in creating New Product Development Capability, and its impact on marketing performance. An important contribution in this study is the formation of a conceptual model on the marketing dimensions of microbusinesses in increasing New Product Development Capability, and the types of New Product Development Capability that can be applied in improving the marketing performance especially the craftsmen of Ulos Simalungun in North Sumatra.