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Literature search has revealed that despite the dominance of services in modern economies, and their rapid growth worldwide, there are limited researches in the area of service innovation. This study attempted to bridge the gap by ascertaining the nature of relationship between innovation and firm performance. The study adopted a mixture of expost-facto and survey research design. The sources of data for the study were both primary and secondary. The research instrument was developed and it was subjected to both validity and reliability measures and was found to be valid and reliable for the study. Simple random sampling technique was adopted for the study. Three hypotheses were formulated and subjected to inferential statistical tests such as correlation and regression. It was discovered that service process innovation, service modification and service innovation structure are significantly related to firm performance. It was recommended that firms should put in place service innovation structure that is coupled with quality improvement practices in order to sustain and enhance its competitive advantage and customer patronage.

Assessing the Link between service Innovation and Performance in Telecommunication Industry