Purpose – The purpose of this study was to examine the impact of innovative leadership (IL) and modern technology applications (MTA) on leadership competencies (LC), with technological knowledge (TK) acting as an intervening variable. This study aimed to explore both direct and indirect effects between these variables in medium-sized American companies. Design/methodology/approach – This study used a descriptive analytical approach using a questionnaire to collect data from 430 employees of medium-sized American companies over two years. The focus was on assessing the relationships between IL, MTA and LC, with TK serving as an intervening variable. Findings – This study found that eight out of ten hypotheses were supported, revealing significant direct effects of IL on LC, as well as indirect effects mediated by TK. However, two hypotheses — concerning the impact of MTA on TK — were not supported due to weak or insignificant effects. Originality/value – This study provides valuable insights into the role of IL in enhancing LC in medium- sized American companies. The inclusion of TK as an intervening variable offers a novel perspective on the interplay between leadership practices and MTA, contributing to the understanding of how LC can be developed in a technology-driven environment. This study introduces a novel integration of leadership theory, knowledge management and technology adoption, offering one of the first empirical models to test the mediating role of TK in medium-sized US firms.