Due to the dynamic changing environment, firms have to continuously promote novelty and variety. Particularly in the service sector, the concept of dynamic service innovation capability (DSIC) has created a lot of attention. Five major dimensions including sensing customer needs, sensing technological options, conceptualising ideas to practices, co-producing and orchestrating, and scaling and stretching, have been identified as some of the most important factors to win competitive advantages. However, empirical validations regarding the generalisability of DSIC constructs and its influences on service innovation, competitive advantage and organisational performance are still limited. Using a questionnaire survey approach, data were obtained from 258 respondents who are executive managers of convenient stores, supermarkets, home shopping, retailed, etc. The results concluded that learning orientation, knowledge resources and relationship-based assets are three of the major antecedents that can promote DSIC. Service innovation, competitive advantage, and organisational performance are the major consequences of DSIC. Furthermore, market dynamism and market orientation can serve as two of the moderators to strengthen the influences of DSIC on service innovation, competitive advantage and organisational performance.
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