This study aimed to examine the effect of interorganizational collaboration networks on innovation performance in small and medium-sized enterprises, considering the mediating roles of organizational trust, absorptive capacity, and knowledge exchange. This applied quantitative study used a survey-correlational design. The statistical population consisted of senior managers of small and medium-sized enterprises located in industrial towns of Tehran Province. Based on power analysis using G*Power, 155 participants were selected as the sample. Data were collected using a researcher-made questionnaire based on a five-point Likert scale. Data analysis was conducted using SPSS version 26 and SmartPLS version 3 through partial least squares structural equation modeling. The results showed that interorganizational collaboration networks had a direct, positive, and significant effect on innovation performance (β=0.638, t=11.887, p<0.001). Collaboration networks also significantly affected organizational trust (β=0.613), knowledge exchange (β=0.436), and absorptive capacity (β=0.573). Organizational trust (β=0.230, p=0.005), knowledge exchange (β=0.256, p=0.004), and absorptive capacity (β=0.250, p=0.008) had positive and significant effects on innovation performance. The indirect effects through organizational trust, knowledge exchange, and absorptive capacity were also significant. The GOF value of 0.603 confirmed the strong overall fit of the model. Interorganizational collaboration networks play a substantial role in improving innovation performance in small and medium-sized enterprises, and this effect is strengthened through organizational trust, absorptive capacity, and knowledge exchange. Therefore, purposeful management of collaboration networks can serve as an effective strategy for enhancing innovation in SMEs.