Innovation challenges of utilities in informal settlements: Combining a capabilities and regime perspective

•Utilities face difficulties providing basic services to the urban poor in informal settlements.•Combined perspective: management- (capabilities) and sustainability transitions literature (socio-technical regimes).•Framework enables the identification of capabilities that utilities need to successfully operate in informal settlements.•Utilities’ pro-poor innovation strategies should align their capability portfolios to regimes in informal settlements.•A pro-poor department needs performance indicators that leave sufficient room to develop new capabilities.