Aim/Purpose
To address the critical need for service innovation in Higher Education Institutions (HEIs), this paper extends the Conservation of Resources (COR) theory. As HEIs navigate increasingly complex environments, a shift away from traditional innovation models becomes imperative.

Background
We propose a new framework for service innovation performance in higher education. Traditionally, innovation has been centered on product and process improvements, often with a strong emphasis on technological advancements. However, we advocate for service innovation in the context of HEIs and contend that non-technological factors, such as Psychological Capital (PsyCap) and Entrepreneurial Orientation (EO), are equally crucial for driving innovation and contributing to universities’ third mission of research commercialization.

Methodology
Drawing on existing literature, this conceptual study integrates the Conservation of Resource (COR) theory with current innovation challenges faced by HEIs. A framework is proposed to emphasize the importance of PsyCap and EO in fostering service innovation.

Contribution
This study responds to the scholarly call for research on service innovation. In any case, this paper contributes to organizational behavior, entrepreneurship and innovation literature by applying COR theory to the context of service innovation in higher education.

Recommendations for Practitioners
HEIs should prioritize investments in developing PsyCap and EO to facilitate resource-constrained environments and drive service innovation.

Recommendations for Researchers
To further advance this research, future studies should empirically test the proposed model in different industries, such as the information and technology industry, and explore the interrelationships between PsyCap, entrepreneurship, and service innovation outcomes.

Impact on Society
Indubitably, HEIs enjoy the status of substantially amplifying their impact on society by embracing SEI through the proposed model. This approach opens doors for stronger collaboration with stakeholders and deeper engagement with communities, enabling HEIs to tackle pressing social challenges and extend their influence beyond traditional academic boundaries. In today’s rapidly evolving world, HEIs face a complex global landscape that demands engagement with society. Central to this model is the cultivation of entrepreneurial skills that bring about the needed engagement, propel innovation, and drive meaningful social change for a brighter future.

Future Research
The focus of this study is the individual. In lieu of the fact that innovation is a complex process involving many actors, future studies, besides validating the proposed model, should study it at the team, organizational, industry, and societal levels. Besides, its expansion to other departments (architecture, engineering) may also be considered. Future studies can also measure it with managerial orientation.