Innovation is a complex phenomenon that has been linked to higher performing entrepreneurial firms. Innovation capability (IC) is defined as the set of capabilities that a firm needs to support innovation across all areas of its activities. Studies in this field have focused on the manufacturing sector. Innovation capability within the services sector remains an under-examined area, yet this is the largest of all the industry sectors globally and warrants greater attention.

This research contributes toward a better understanding of the set of capabilities that a service-based firm needs in order to facilitate and support its innovation activities.