The current purpose of this study is to determine a solution to the inconsistent gap existing between relational capability toward business performance through reciprocal co-creation and market responsiveness from the S-D-L perspective. Reciprocal co-creation is a form of mutual exchange collaboration that uses innovation to develop a new value. In this study, four hypotheses were developed and tested with 115 samples from the apparel industry in Central Java, Indonesia. This research highlights the important role of reciprocal co-creation, which is the ability to mediate the relationship existing between relational capabilities to improve business performance. Market responsiveness significantly affects reciprocal co-creation and relational capabilities, although it does not improve business performance