Due to the limitation of resources and cost, it is hard for small medium enterprises (SMEs) to survive in the competitive market, especially in establishing an effective relationship with customers. Alternatively, many SMEs use social commerce platforms to cover those limitations, one of them is Instagram-for-Business. The enterprise edition of Instagram has offered knowledge-based features to manage customer information. However, since the launching in 2016, the impact about Instagram-for-Business related to customer knowledge management (CKM) has not been researched properly. Therefore, in this study, we evaluate the role of Instagram-for-Business and CKM for SME's innovation capability. By conducting a survey method, this research has collected information from 152 SMEs from any type of industry in Indonesia. The findings conclude that through CKM implementation, Instagram-for-Business significantly affects innovation capability in SMEs.