<p>This study aims to understand how managerial and organizational micro-foundations related to Generative AI (GenAI) shape the development of flexible supply chain capabilities, and how these capabilities influence organizational learning and performance outcomes, particularly in the presence of organizational politics. Drawing on the dynamic capability view, the behavioral theory of the firm, and the socio-political view of organizations, this study develops a model that was tested using data collected through a survey from 600 samples. The research findings confirm that GenAI-enabled operational capabilities, when rooted in sound managerial capabilities and responsible governance, can develop flexible supply chain capabilities. These capabilities, in turn, contribute to greater organizational learning and supply chain performance. Additionally, this study reveals that organizational politics plays a decisive role in amplifying or dampening these benefits. This study makes unique theoretical contributions by bridging the dynamic capabilities literature with practical insights on GenAI adoption, supply chain flexibility, learning capacity, and organizational behavior. These contributions not only advance theory but also lay the groundwork for future exploration into how emerging technologies such as GenAI shape the evolution of dynamic capabilities in complex organizational systems.</p>