The current study is the culmination of a long period of research in the field of structural capital (SC) and customer relationship management (CRM) in relation to the pursuit of high performance in small and medium enterprises (SMEs). It fills the existing gaps in theory and practice by investigating the nature of the relationship between CRM and SMEs’ performance in the manufacturing industry of Yemen, and the moderating effects of SC on this relationship. The data was collected from 214 SMEs. PLS-SEM was used to test the study’s hypotheses. Results shows that all dimension of CRM has significant influence on SMEs’ performance. Additionally, results show that SC moderates the relationship between three CRM dimensions. These findings have important theoretical implications both for Yemen and for countries with similar situations. The study will serve as a reference point for such countries in trying to understand factors influencing performance.