Abstract. Interorganizational relationships (IOR) arising from interaction created by a firm can become a strategy for business development. Proper IOR management can provide benefits in improving firm’s innovation performance. Innovation performance which is also associated with innovation outcomes is strongly influenced by firm’s innovation capabilities. This paper discusses the influence of IOR towards innovation capabilities which is seen by analyzing the processes that occur in generating innovation outcomes. Through eight case studies in automotive components firms in Indonesia, it appears that the IOR can enhance company's innovation capabilities, especially for conducting technological innovation. The resulting innovations may be regarded as open innovation with the role of external parties in the process of innovation in the company. By IOR, a company may acquire or increase innovation enablers required to generate innovation outcomes. IOR can also shape and strengthen the basic foundation to build an innovative company. It is also found that innovation may become a media to form social control in IOR. Keywords: IOR, innovation performance, innovation capability, innovation outcomes, innovation enabler, resource-dependance