The research aims to empirically verify the role of adaptive capability in its contribution to marketing performance, with product innovation as a mediating variable. This research was conducted in small and medium enterprises (SMEs) located in Central Java, Indonesia. A number of 253 questionnaires were distributed and adequately filled. Statistical analysis was conducted by using structural equation modeling with Smart-Partial Least Squares (PLS). The results show that the adaptive capability was positively related to product innovation, but not significant to marketing performance. Furthermore, our findings show that product innovation had a significant effect on marketing performance and it fully mediated the relationship between adaptive capability and marketing performance. These findings offer implications regarding how adaptive capability enhance marketing performance through product innovation in SMEs.