With SDL (Service-Dominant Logic), we developed a conceptual framework and conducted an empirical research with medical, financial-related, software and logistics industry. The study aims to explore how companies’ competence can help to develop mobile service innovation, and to what extent service co-innovation can influence innovation performance. Self-administered questionnaires were adopted to investigate IT department and sales department in each firm. The data were received from 164 sales managers from four industries. The findings suggest that a firm with the high level of mobile service co-innovation can promote innovation performance. Furthermore, the results showed that alliance management capability and IT readiness influence mobile service co-innovation. The study contribute to innovation literature by suggesting that firm should develop and gain operant resources that promote and foster mobile service co-innovation.