External relational network of a firm is the key factor of the success of service innovation. This study integrates the relational embedded and configuration theory to taxonomies firms into three clusters-customer relationship practitioner, transaction orientationer, and business relationship practitioner-based on their strength of ties with suppliers, customers, competitors, and research institutions. The result confirms the cluster of customer relationship practitioner induces the best service innovation performance from sample of 201 corporate informants. Also, we find difference in the best relational embedded configuration between these type of service innovation which are multi-unit organization, new combinations of services, customer as co-producer and technological innovations. Finally, implications and directions for future research were discussed.