Although unlearning in organisations has been considered necessary for organisational learning, little is known about how unlearning takes place. This paper examines the relative importance and significance of Individual Unlearning (IUL) on the organisational relearning and its effects on the creation of Relational Capital (RC) through an empirical investigation of 130 SMEs in the Spanish telecommunicasector using structural equation modelling validated by factor analysis. Results support that IUL has an indirect effect on RC through organisational relearning.