This study examines the effect of information technology capabilities on the performance of the SME business with customer orientation serves as the mediation of the relationship between information technology capabilities and business performance. SME business performance that will either reinforce the existence of SMEs in the domestic market and increase the ability to compete in balance in the International market. The study population was in the manufacturing sector in the region of Solo Raya as 505 companies with a sample of 120 SMEs. The sampling technique used is the probability sampling with primary data sourced from small business owners who know the conditions of the use of information technology and customer orientation within the company. The method used to analyze the data is structural equation modeling (SEM) with the help of Partial Least Square (PLS). The result showed business performance can be explained by the capabilities of information technology and customer orientation by 54%. Hypothesis testing results showed the capabilities of information technology has positive effect on customer orientation and business performance. Besides customer orientation effect on performance. The customer orientation can serve as mediating in the relationship between information technology capabilities and business performance.