ABSTRACT
This study aims to investigate first, the effect of service innovation on organizational performance, and second, the moderating effects of environmental contingencies on the relationship between service innovation and organizational performance. Survey study was conducted. Data were collected by both online and offline questionnaires. In total, 112 data from retail companies in Indonesia were used for analysis. The results show service innovation has a positive effect on organizational performance; environmental munificence and environmental dynamism positively moderate the relationship between service innovation and organizational performance, while environmental heterogeneity and environmental hostility negatively moderate that relationship. This study contributes to the current literature by proving that environmental contingencies may support co-producing and co-creating values activities as long as the company can overcome resistances resources and integrate those resources with other organizational resources.
