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