According to innovation literature, between 50% and 90% of innovations fail. An explanation for failing innovations is offered by scholars in the field of innovation resistance, who argue that it is more relevant to pay attention to the reasons why consumers reject an innovation, rather than learning about their motivations to adopt a new product or service. At the same time, previous marketing literature has devoted little attention towards design, despite its strategic importance and its role as a driver of innovation and competitive advantage. The purpose of this study was to investigate how companies perceive innovation resistance towards service innovations and how it is reflected in the service design. The major takeaways in this study revealed that companies were aware of all the barriers, except for social risk and perceived security risk. Furthermore, companies made most service design adaptations based on the usage and value barrier both prior and post launch. Also, although the tradition and norm barrier and image barrier were considered critical for an innovation’s success, companies did not change the service design accordingly. Finally, it was revealed that companies followed a hybrid approach of innovation, where more of a design-driven innovation strategy was used to generate innovation ideas and a user-centered approach was applied by involving consumers in pilot studies and listening to the consumer voices post launch.