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Previous studies have shown that knowledge management (KM) plays a role in service innovation or that there is a positive relationship between them. However, this role or relationship is yet to be established quantitatively through empirical evidence within the context of university libraries in Nigeria. The purpose of this study is to determine how knowledge management affects innovative services in university libraries in Nigeria.

The study adopted a quantitative approach and used questionnaire to collect data from 250 librarians who participated in the study. A structural equation modeling approach was used to validate the research model.

It was found that KM affected service innovation positively. The three measures of KM cycle, namely, knowledge capture/creation, knowledge sharing/transfer and knowledge application/use were found to have positive and significant effect on service innovation in university libraries in Nigeria. In conclusion, university libraries in Nigeria with high activities in knowledge capture, knowledge sharing and knowledge use are more likely to provide innovative services to their users.

The study suggests that libraries with high level of activities in knowledge capturing, sharing and application are more likely to engage in innovative services. The study is also capable of encouraging students to take courses on KM and library and information science educators to place more emphasis on KM in their curricular.

The paper offers a unique empirical direction for service innovation in university libraries in Nigeria. As there is a dearth of quantitative empirical evidence in the area of service innovation in libraries, the empirical evidence obtained in this paper will not only contribute to the body of knowledge in this area but also be used to create an environment for innovative library services.