In today’s digital world, digital innovations and new digital capabilities gain increasing prevalence. Organizations have to be able to deal with the transformative impact of digital products and services on their operations and business models. At the same time, digital product and service innovations (DPI) dare organizations with new managerial challenges. Based on resource-based view theory, this study argues that in order to achieve superior DPI results, organizations need to develop firm-wide DPI capabilities that allow them to assemble, integrate, and deploy their digital resources. Empirical data collected from DPI project team members across Germany, Austria and Switzerland shows that an organization’s DPI capabilities positively influence its DPI performance. Moreover, the empirical data confirms our conceptualization of DPI capabilities.