Trabajo presentado a la DRUID Academy Conference for doctoral students in Economics and Management of Innovation, Technology and Organizations, celebrada en Cambridge (UK) del 19 al 21 de Enero de 2012.Design management is an increasingly important concept for small and medium enterprises, research into which is remarkably scarce. We note that the description given in the literature for the design management allows it to be understood as a dynamic capability. The aim of this paper is to present this dynamic capability and analyze its mediator relationship between organizational learning capability (OLC) and product innovation performance. Structural equation modeling was used to test the research hypotheses on a SME data set from the Italian and Spanish ceramic tile industry. The results suggest that organizational learning capability enhances product innovation. Furthermore, design management capability plays a significant role in determining the effects of the organizational learning capability on product innovation.Peer Reviewe