With the global environment changed rapidly, traditional sources of competitive advantage can no longer provide a sustainable strength for business, the approach to global business strategy point to core competencies, invisible assets, and organizational capabilities as key factors influencing MNC¡¦s long-term success in global markets. Benefited by resource-based view (RBV), strategic human resource management (SHRM), and organization behavior (OB) theories as theoretical groundwork, and our contributions include of (1) We built up a theoretical framework from the perspective of human capital to investigate how learning organizational capital facilites firm¡¦s innovative capabilities through human capital flexibility as a mediator. (2) Define human capital flexibility and its seven dimentions. (3) Define learning organizational capital with three dimensions derived from human capital perspective of knowledge-based literatures. Using sample of 184 subsidiaries of Taiwanese MNCs with SEM technique, our empirical result further indicates that human capital flexibility and learning organizational capital has positive effects on firm¡¦s innovative capabilities. Also, human capital flexibility plays a key role as a strong mediator that enhanced organizational capital to exert firm¡¦s innovative capabilities