In addition to affecting the organization's service innovation, the employee's absorptive capacity also directly affects job satisfaction. Absorptive capacity is an important factor in predicting service innovation. The purpose of this study is to explore the impact of hotel industry's absorptive capacity on service innovation and job satisfaction, and to further explore whether absorptive capacity affects employee performance through service innovation and job satisfaction. Feedback data from 262 valid questionnaires of the study has been obtained. The study found that absorptive capacity affects the relationship between employee performance through service innovation and job satisfaction.