Abstract: Chinese scientific and technological enterprise are frequently blocked and sanctioned by western countries. How to improve their strategic flexibility to cope with the complex competitive environment has become an important issue in theory and practice. Based on the theory of dynamic capability, this paper empirically examines the relationship between absorptive capacity and strategic flexibility of Chinese scientific and technological SMES. The results show that (1) there is a significant positive correlation between the absorptive capacity and strategic flexibility, and the absorptive capacity can significantly improve the strategic flexibility. (2) Organizational legitimacy positively moderates the relationship between absorptive capacity and strategic flexibility, which means that the positive relationship between absorptive capacity and strategic flexibility will be enhanced in context of higher organizational legitimacy. (3) The innovation atmosphere positively moderates the relationship between absorptive capacity and strategic flexibility. That is to say, under in the context of better organizational innovation atmosphere, absorptive capacity plays a more significant role in enhancing strategic flexibility. The conclusion of this paper has important managerial implication for Chinese scientific and technological enterprises to cope with the complex and changeable competitive environment.