Complexity theory is suitable for understanding IES (e.g., business analytics service) and IES innovation.
IES can be effectively conceptualized as complex adaptive systems (CAS).
The environment of IES is rugged and dancing and co‐evolves with IES.
IES innovation is a co‐evolutionary process of variation, selection, and retention (VSR).
Organizations can increase IES innovation by adopting a guided VSR.
