This paper extends the dynamic capabilities (DCs) perspective into the study of new service development (NSD). Drawing from both the DCs view and the NSD perspective, this paper explores theoretically and examines empirically the associations between four core dynamic capability components: adaptive capabilities, absorptive capabilities, arranging capabilities and administration capabilities (4As capabilities) exercised in the process of NSD. DCs have been argued to reside at different levels of organization. Thus far enormous research has focused on organizational level of DCs. Many studies has recognized the importance of DC at micro/individual level (e.g. Teece, 2007; Rothaermel and Hess, 2007), yet research relating to DC at the individual level of organizations is still lacking. Hence, this study focuses on developing and empirically validating an appropriate measurement scale for micro-level DCs. The majority of NSD research has concentrated on the financial service sector; however, the hotel industry, one of the global largest industries, has not been well investigated (Ottenbacher, 2007). The study addresses its research objectives through an empirical investigation adopting both qualitative interviews and a quantitative survey in the hotel sector. This entailed a large quantitative pilot study (433 respondents) and a full-scale survey of hotel sector employees (1,079 respondents) in Thailand. The results, analysed through multiple regression analysis, show positive impact of 4As capabilities applied in different NSD activities on the NSD outcomes. The research findings provide guidance to managers as to how NSD performance is influenced by DCs exercised during the NSD process. The theoretical and managerial implications of this research are articulated.