In some instances, the service firms are experiencing difficulties in supplying their customers with new and better services due to their deteriorating service capabilities over time. To address this challenge, this paper investigates the state-of-the-art development of the service innovation capability frameworks, especially those that integrate the organisational capabilities theory, service innovation capability, and technological capability upgrading concept. Through the use of the systematic literature review, it is found that there was no theoretical model that integrated the organisational capabilities theory, service innovation capability concept, and technological capability upgrading concept. Therefore, this is a research gap found in this study. This research gap was addressed by the development of an integrative framework that consists of organisational capabilities theory, service innovation capability concept, and technological capability upgrading concept based on the literature review of this study and this integrative framework is the theoretical contribution of this study.