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It intends to highlight how an automobile service firm apply dynamic knowledge management concept to create new service processes which resulted in breaking through the bottleneck of profit loss.<\/jats:p><\/jats:sec><jats:sec><jats:title content-type=\"abstract-heading\">Design\/methodology\/approach<\/jats:title><jats:p>The study is based on an in\u2010depth case study, semi\u2010structured interviews and extensive access to the secondary data on the firm. A qualitative approach was used to analyze the data due to the complexity of contextual content.<\/jats:p><\/jats:sec><jats:sec><jats:title content-type=\"abstract-heading\">Findings<\/jats:title><jats:p>The proposed model has been validated and found that dynamic capabilities could enhance knowledge management by linking external resources or stimuli and internal knowledge management practices. Empirical evidence has also been provided on how a firm can apply dynamic capabilities to its knowledge management to substantiate service innovation.<\/jats:p><\/jats:sec><jats:sec><jats:title content-type=\"abstract-heading\">Research limitations\/implications<\/jats:title><jats:p>Further studies verifying the linkage between knowledge management and specific capabilities can be extended from this study.<\/jats:p><\/jats:sec><jats:sec><jats:title content-type=\"abstract-heading\">Practical implications<\/jats:title><jats:p>The proposed model provides a guideline for practitioners in managing their valuable knowledge and enhancing the existing knowledge management practices.<\/jats:p><\/jats:sec><jats:sec><jats:title content-type=\"abstract-heading\">Originality\/value<\/jats:title><jats:p>This paper identifies a gap in the linkage between knowledge management and constant environmental changes that has been overlooked. 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