Service innovation has been found to be a major driver of innovation performance in service contexts. But this issue raises questions concerning the extent to which the relationship between market orientation and innovation performance holds in the high-tech industry. Relatively little research has examined how market orientation contributes to innovation performance through service innovation. We here report an empirical study of 235 Taiwanese high-tech firms to examine the influence of market orientation on service innovation and innovation performance. A noteworthy finding is that the impacts of customer orientation and competitor orientation on innovation performance are fully mediated by service innovation. However, service innovation does only partially mediate the relationship between inter-functional orientation and innovation performance. The findings of this study should help managers consider appropriate service innovation in high-tech industry.