This research investigates the impact of Entrepreneurial Orientation (EO) on Innovation Performance (IP), emphasizing the mediating effect of Strategic Flexibility (SF) within modern project management contexts. The study aims to elucidate how EO, characterized by attributes such as innovativeness, proactiveness, and risk-taking, impacts IP, particularly when moderated by SF, which allows organizations to adapt and reallocate resources efficiently. Utilizing a quantitative approach, data were gathered from 250 project management professionals via structured questionnaires. The findings reveal significant positive associations between EO, SF, and IP, with SF partially mediating the relationship between EO and IP. The analysis, including descriptive statistics, reliability and validity assessments, correlation, and mediation analyses, confirms that teams with high EO and SF tend to achieve superior innovation outcomes. The practical implications highlight the necessity for organizations to foster an entrepreneurial culture and enhance strategic flexibility to boost innovation performance. The study’s limitations include potential biases inherent in self-reported data and its cross-sectional design. Future research should investigate additional mediators and moderators in varied contexts and employ longitudinal methodologies to establish causal relationships. This research advances both theoretical and practical insights into optimizing EO and SF to drive sustained innovation in dynamic project environments.