Knowledge absorptive capacity has an important impact on the service innovation performance of the service-based business. This paper chooses competitive advantage and customer satisfaction to measure the service innovation performance. This paper analyzes the impact of knowledge absorptive capacity on competitive advantage and customer satisfaction，and does an empirical research as the example of service outsourcing enterprises by using the structural equation model. The conclusion is that the improvement of knowledge absorptive capacity is conducive to enhancing the competitive advantage of service outsourcing enterprises and improving the customer satisfaction, thus improving the service innovation performance.