The purpose of this research is to examine transformational leadership impacts open innovation through the mediating role of commitment-based human resource management practices. A quantitative survey was conducted to collect data from a sample of 169 SMEs. The findings indicate a considerable positive correlation between transformational leadership and inbound open innovation in SMEs, as demonstrated by the quantitative survey analysis conducted with SmartPLS version 4.1.0.9. Furthermore, commitment-based human resource management methods work as a significant mediator between transformational leadership towards and innovation and the acquisition of knowledge within a company, referred to as inbound open innovation. The results underscore the imperative of developing organizational leadership that promotes change, creativity, trust, and employee commitment to enhance organizational openness. Open innovation is a recognized organizational approach that promotes transformation, enhances the competitiveness of SMEs, and stimulates overall economic growth. The results compel policymakers and decision makers to concentrate more on a transformational leadership style that can facilitate transformation and boost employee loyalty to the firm. Consequently, a culture of openness will be fostered, resulting in a more favorable impact on the performance of SMEs.