This research aims to find out how to build good relations with external parties in terms of importing raw materials and also for the supplier relationship is one important type of cooperation between and among firms. Supplier relationship management (SRM) is a part of the overall supply chain management process. Over the past several years, there has been a significant shift in the way organization approach supplier relationship management. Recent years have seen an increased interest and involvement in the partnership model. Several authors said that partnership will deliver superior performance. In a number of previous studies, the application of this SRM has been shown to have an influence on company performance. However, research related to SRM that has been carried out has generally only been carried out on large companies. Even though, The economy in Indonesia is still very much dominated by micro, small and medium enterprises (MSMEs). Given the differences in the pattern of purchasing relationships between buyers and suppliers in large and small companies, this study was conducted with the aim of exploring the role of SRM implementation on supplier quality and MSME business performance in Indonesia. From this research, it is also expected to produce suggestions related to SRM activities that can be implemented by MSMEs so that they can improve the quality of suppliers and their business performance. This study provides the results that the practice of SRM simultaneously has a significant influence on supplier quality, and supplier quality has a significant effect on the performance of MSMEs.