In this work, to achieve higher capacity, spatial modulation (SM) is utilized in a cooperative scheme in two different models of Cooperative SM, where SM is applied either at the source or the selected partner through an antenna array. A theoretical model of SM capacity is defined based on closed form lower and upper bound of the SM capacity. Based on the theoretical analysis of the channel capacity in both CSM systems the simplest and easier to implement selection criteria have been suggested to select a single partner to maximize CSM capacity. The CSM system in which SM is applied through the partner’s antenna array is providing significant enhancement over the other CSM model and cooperative multiple-input-multiple-output (CO-MIMO) networks based on multiple partners. Moreover, the system with a single randomly selected partner equipped with four antennas, behaves similarly as the best configuration of CO-MIMO based on the cooperation of four partners with the computational complexity linearly increases with the number of available partners to help. All of the theoretical findings are verified through simulation studies.