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The study examines the mediating role of organizational learning mechanisms in the relationship between principals’ system thinking and collective teacher efficacy, as well as senior management team innovation, after accounting for students’ socioeconomic backgrounds. Data were collected from 494 participants across 71 elementary schools using a four-source design: principals, management team members, teachers, and objective school-level data from the Ministry of Education. Data were aggregated at the school-level of analysis. The results from structural equation modeling and bootstrapping analysis indicated that organizational learning mechanisms mediate the relationships between principals’ systems thinking and collective teacher efficacy, and senior management team innovation. The findings provide theoretical and practical insights into how leadership and learning processes promote innovation and collective efficacy in schools.