Service organisations such as motor vehicle retailers are faced with intense competition and are relying on service innovations to achieve a competitive advantage and improve business performance. The purpose of this study was to investigate the drivers of service innovation in service organisations in a retail context. A qualitative research method was followed to achieve the research objective. In-depth interviews were conducted with service managers and marketing personnel of service organisations. The primary data in this research paper was analysed using a content analysis method with the aid of Atlas.ti version 8. The results of this research paper revealed that the level of competition in the industry, customers’ changing behaviour and organisations’ resources serve as key drivers of service innovation in service organisations. This paper provides recommendations to service managers in service organisations and directions for future research on service innovation.

Keywords: Content analysis; Business performance; Service innovations; Service organisation

JEL Classification: M30, M31.