The present paper discusses the interrelationship among knowledge creation, heterogeneity, and open service innovation – an important theme of marketing research. Drawing on the literature of knowledge based innovation, we argue that both researchers and practitioners should extend the functionality of created knowledge into open and service-oriented innovation context. Our conceptual framework represent the following major points. First, the four classic knowledge creation mode each has different influences on open service innovation, given employee and customer knowledge is a cornerstone of service innovation. Specifically, socialization positively, externalization positively, combination positively, and internalization negatively predicts open service innovation. Second, knowledge heterogeneity moderates in the above mentioned relationships. Implication are discussed

• Fu-Sheng Tsai(Cheng Shiu University, Taiwan)
• Julia L. Lin(I-Shou University, Taiwan)
• Yu-Chia Chen(I-Shou University, Taiwan)