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Using knowledge instead of information, using knowledge to transform enterprise, it has become a trend in now economy. The arrival of knowledge economy era, makes the enterprise promote innovation through the knowledge and improves the ability to use and manage knowledge, so that it can obtain sustainable competitive advantage. This paper, through analyzing the knowledge value chain including knowledge input, knowledge activities, knowledge output and knowledge innovation of service enterprise, studies the influence mechanism of knowledge value chain on service innovation of service enterprises. The thinking of service innovation based on knowledge value chain is advantageous for enterprise to make full use of internal and external knowledge resources, so as to promote competitive ability of the enterprise, is also helpful for the exploration of enterprise service innovation in knowledge management field.