Along the change of world economic vision to service-based economy, service innovation is considered as a significant factor in achieving and maintaining firm’s competitive advantage. In this situation, manufacturing firms are also required to adopt a strategy to develop services to their portfolio and consider service innovation (in addition to product innovation). The main challenge of manufacturing firms involved in shifting from "product orientation" to "product and service orientation", is management of dynamic capabilities for creating service innovation. Dynamic capabilities facilitate the transformation and renewal of firms’ current processes and enable all types of innovation to create a better fit with the environment. The purpose of this study is to identify microfoundations of dynamic capabilities in service innovation and explanation the interactions between these microfoundations in an Iranian manufacturing firm (SAIPA Automotive Company). Therefore, 14 microfoundations were identified in three dynamic capability categories through deep literature reviewing. Then, the opinion of the academic and executive experts was collected using a questionnaire about the necessity and importance of each microfoundations in service innovation. Based on the opinion of the executives, the intensity and interconnectivity between these microfoundations in the context of SAIPA Automotive Company as a manufacturing firm were studied through FUZZY DEMATEL technique.