With the ongoing intensification of VUCA environment, enhancing service innovation performance has become a crucial choice for enterprises striving for sustainable development. The emergence of digital transformation offers construction enterprises an opportunity to bolster their service innovation performance. However, effectively leveraging digital transformation for this purpose remains a formidable challenge. Therefore, this study proposes a theoretical model from the perspective of Resource-Based View, named “Digital Transformation-Dual Innovation-Service Innovation Performance”, to explore the impact of digital transformation on the service innovation performance of construction enterprises. This model proposes the impact path of digital transformation on service innovation performance, as well as a mediating role of dual innovation in this relationship. A questionnaire was designed and administered in China for collecting 291 valid responses. An analysis revealed that digital transformation exerts a positive impact on both dual innovation and service innovation performance, with the former proving to be more significant. Furthermore, dual innovation not only significantly enhances service innovation performance but also serves as a partial mediator between digital transformation and service innovation performance. The findings of this research clarify the internal mechanism by which digital transformation empowers service innovation in construction enterprises, offering insights for enhancing service innovation performance and achieving sustainable development.