Background: Tutoring SMEs increasingly need to renew their service delivery as digitalisation and changing parent and student preferences reshape competition. Objective: This study examines the effect of service innovation on new product performance and tests whether market turbulence moderates that relationship among tutoring SMEs in Banyumas, Purbalingga, and Banjarnegara. Methods: A quantitative, purposive-sampling design was analysed in SPSS Version 30 using item validity and reliability tests and an ordinary least-squares interaction model. Results: Service innovation positively predicted new product performance (B = 0.383, t = 2.547, p = .017), while market turbulence had a direct positive association (B = 0.451, t = 3.933, p < .001). The interaction was not significant (B = 0.014, t = 0.344, p = .734). Conclusion: Service innovation is associated with stronger new product performance, whereas market turbulence operates as a direct contextual correlate rather than a moderator in this sample.
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