Stimulation of creativity has long been assumed to enhance innovation. Accordingly, organizing the work environment to unleash the creative potential of employees has been studied extensively. However, the present creativity literature has yet to produce sufficient empirical evidence to confirm this assumption, and therefore the generalizability of the relationship between organizational creativity and innovation remains indeterminate. This paper adopts the leading creativity and innovation models to identify the work environment characteristics stimulating creativity, and subsequently analyses whether this environment leads to product and process innovation in small and medium sized firms. The findings demonstrate that this environment does not yield the same results for product and process innovation, and particular factors of the work environment do not behave according to the expectations to enhance the likelihood of doing innovation. The study discusses these findings and advances the literature by showing that the relationship between organizational creativity and innovation is not generalizable, but is contingent upon the innovation type and, as the discussion will show, particular characteristics related to the firm. Accordingly, the paper suggests new research opportunities to further explore organizational creativity and innovation.