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Purpose

Drawing on the resource-based view, this paper aims to extend prior information technology (IT) B2B service research by building and empirically testing a theoretical model in which organizational agility mediates the relationship between organizational capabilities (IT capability and organizational learning) and service innovation performance, under conditions of entrepreneurial alertness.

Design/methodology/approach

The theoretical hypotheses are confirmed by partial least squares analysis of survey responses collected from 170 IT B2B service firms.

Findings

The results reveal that the effect of either IT capability or organizational learning on service innovation performance is fully mediated by organizational agility, and organizational agility has a greater impact on service innovation performance under a high level of entrepreneurial alertness than under a low level.

Practical implications

The results of this study provide specific managerial guidelines for how to effectively manage organizational mechanisms to enhance IT B2B service innovation performance.

Originality/value

This study contributes to the literature of service innovation, IT B2B (industrial) marketing and dynamic capability by providing theory-driven and empirically proven explanations to help managers better understand the IT capability-service innovation relationship from the perspective of organizational mechanisms (organizational agility, organizational learning and entrepreneurial alertness).

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