ABSTRACT:- This study aimed to examine the relationship between technological capabilities and service innovation dimensions (incremental and radical) in the service sector in Sudan. The study employed the quantitative method via convenience sampling; the population was the 161 managers of the service firm response rate of 97%. The result of this study show that a positive relationship between technological capabilities and incremental innovation, the result also indicate that a positive relationship between technological capabilities and radical innovation. The study recommended that future research should test in other settings (e.g. manufacturing) could expand the scope of technological capabilities. The study also recommended Future research may include firms from other industries or regions to generalize the findings. It would provide valuable information for managers regarding the mapping of technological capabilities with service innovation.

KEYWORDS: Technological Capabilities, Service Innovation, Incremental Innovation, Radical Innovation.