The study explores the relationship among relational capital and performance of universities in North India. In the first phase, the study identified the major contributors of relational capital by grounding of literature. University-industry collaboration, information disclosure and marketization emerged as major contributors which were also established empirically in the course of the study. Confirmatory factor analysis measurement model established the factor structure of the measurement items. Next, the researchers investigated the relative importance of each contributor in explaining relational capital and its association with university performance. Findings suggest that relational capital has a significant influence on university performance. A collaborative approach, relationship of reciprocity with stakeholders, disclosing relevant information, maintaining transparency and marketization of the institution are the underpinnings of university performance. The study has meaningful implications for policy makers at universities to enable them to strategize around practices conducive to the creation of relational capital and enhance performance.