This study explores the value implications of integrating information technology with service innovation and its antecedents. Specifically, this study examines how a firm's e-service capability and complementary co-operation capability with partners are bundled to form e-service innovation that either maintain or gain a competitive advantage. The results of data gathered from 119 financial service firms in Taiwan. The results indicate that e-service innovation positively affects co-creation value, which consequently leads to improvements in overall firm value.