This research explores the strategic management of operations and innovation capability in the Finnish car retail and service business. In order to develop customer satisfaction and competitive edge, companies need innovative capability to plan and manage operational strategy. Novel collaborative thinking with stakeholders is needed to predict and meet customer needs. Therefore, the ability to create process and service innovations is important. A survey was executed among CEOs and top managers of 147 companies. Data analysis results revealed significant clustering and differences in companies’ capabilities. The practical implication from this study is direct performance development proposals for managers