This thesis aims to provide clarity on which factors within an organization positively affect its performance in terms of innovation.  Innovation is seen as a critical component of a company’s strategy in achieving market differentiation and profitability, yet for many, it remains a frustrating pursuit.  This study aims to empirically model the relationship between a firm’s investment in innovation and the effect of this investment on its performance.  The method used is Structural Equation Modeling with data gathered from our online survey of 128 respondents from firms within the EU.  This work addresses two research questions, the first being to confirm that a firm’s innovation performance is influenced by both a commitment to human factors focusing on softer values in combination with strong R&D and technical capability.  Secondly, whether the presence of innovation inhibitors influences this relationship.  The findings showed that a firm’s innovation performance is improved when it prioritizes creating an environment and culture that nurtures innovation only when activated through a strong commitment to technical and R&D excellence, but not without this technical capacity.  Secondly, the introduction of innovation inhibitors reconfirmed the first finding, and the relationship between both the human factors within a company and its technical capability, as well as the relationship between this technical capability and its performance was stronger in their presence.