Despite growing interest in organizational innovation, the specific pathways through which technology-based SMEs transform learning capability into innovation via entrepreneurial leadership remain insufficiently understood. Furthermore, the moderating role of strategic flexibility in this process has received limited empirical attention. This study investigates how learning capability fosters organizational innovation in technology-based SMEs. It highlights the mediating role of entrepreneurial leadership and the moderating effect of strategic flexibility in shaping this process. Survey data collected from 506 entrepreneurs in Shanxi, China were analysed using SPSS and AMOS. The results show that both learning capability and entrepreneurial leadership positively influence organizational innovation, with entrepreneurial leadership mediating the learning capability and organizational innovation relationship, strategic flexibility strengthens the relationship between learning capability and entrepreneurial leadership. Theoretically, this study contributes to the literature by demonstrating how learning capability acts as a foundational resource that requires dynamic alignment of entrepreneurial leadership and the moderating mechanism of strategic flexibility to organizational innovation. Practically, the findings advise SME managers to prioritize not only knowledge acquisition but also the development of strategic agility, ensuring that leadership can effectively reconfigure resources to drive innovation in turbulent markets.
Rui et al. (2026) studied this question.