Despite growing attention to digital platform-based innovation, existing studies fail to investigate the ambiguous impact mechanism of digital platform capabilities on service innovation. Understanding this impact mechanism is critical for firms since many firms are still trapped in service innovation failure. Therefore, this research contributes to addressing this gap by taking a novel research approach with the knowledge management view (KMV), and analysis results based on a survey reveal that the digital platform capability on consumers (DPCC) and digital platform capability on businesses (DPCB) improve service innovation via knowledge sharing. This research also shows that big data analytics management capability (BDAM) strengthens the positive impact of the DPCC on knowledge sharing but weakens the positive impact of the DPCB on knowledge sharing. Additionally, the current research identifies a negative moderating role of digital business intensity on the relationship between knowledge sharing and service innovation.