To provide compelling value propositions, managers need to be able to identify and develop their organisation’s dynamic capabilities for value creation opportunities. Although earlier dynamic capabilities literature has highlighted the importance of market creation, it has not examined dynamic capabilities and value propositions development process. Furthermore, there has been a lack of examination from MNE and service business development perspective. Qualitative process research and event based analysis provide a promising approach to tackle this challenge. Utilizing a modified steering wheel tool and a longitudinal case of a MNE in ship building industry, we mapped the joint development dynamic capabilities and value propositions. Our analysis revealed the developments to be accumulative and path-dependent. The case company’s critical events included their 1^st acquisition that developed processes to support later M&A activities and early outsourcing of production enabling greater focus on value added services. Furthermore, industry demand decline and formation of solutions unit ushered the development dynamic capabilities centred on improving customer productivity and verification of customer value respectively. With this study we contribute to dynamic capabilities, MNE, and process research. Furthermore, we unearth critical events and paths for managers guiding their companies’ through the service business development process in our ever-globalizing world.