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Nowadays, to attract and retain customers and to maintain their competitiveness, service organisations need to offer high-quality new services and improve their innovation abilities. By integration of Dynamic Service Innovation Capabilities (DSICs) and Organizational Service Innovation Competencies (OSICs) as the critical service innovation quality factors, this study proposes a framework based on maturity model concept to measure service innovation performance and to continuously improve service innovation quality. The framework suggests four types of firms’ performance in service innovation:  incapable ,  struggling ,  truncated , and  exhaustive . The  Incapable  is defined as firms that are low in both DSICs and OSICs, they lack of required service innovation processes, so they are not able to improve innovation performance. The  Struggling  (high DSICs and low OSICs) firms have established appropriate processes for service innovation but they struggle to offer innovations. The service firms in  Truncated  mode (low DSICs and high OSICs) are characterised by implementing service innovation processes partially, but they are good at service innovation competencies. The last type, the  Exhaustive  (high DSICs and high OSICs) are service inventors with superior innovation processes in line with perfect service innovation competencies, these service firms are those which can innovate new service repeatedly and successfully.

Measuring the dimensions of quality in service innovation: A dynamic capability and organisational competency perspective