This study acknowledges the relationships between customer relationship management, innovation capability, and firm performance in the context of small and medium-sized enterprises. Research on the direct relationship between customer relationships and firm performance is sparse, particularly in Plateau State. This essay's goal is to investigate these connections. The research design was mixed-method. Data from 10 participants in the field study was collected through one-on-one personal interviews. The data was extracted, categorized, and cross-examined using content analysis. A questionnaire was created for the quantitative method, and information was gathered from 286 owners and managers of SMEs in Plateau State. The partial least square structural equation modeling method was used to analyze the data. Results from this field research and investigation confirmed these connections, contributed to the body of literature, and showed that innovative capability mediates the relationship between CRM and SME performance and that there is a direct correlation between CRM and SME performance, SME performance, and innovation capability. We contextualize our contribution to theory and practice in this work.