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Abstract: This paper presents a study that extends on previous empirical research, which examined the role of enabling ‘climate for innovation’ constructs in determining the level of innovation diffusion outcomes, and subsequent business performance in architectural and engineering design (AED) firms. Whilst this previous study elucidated the relationships between broad theoretical constructs, the present study was focused on targeting the significant enabling factor interrelationships with the core outcomes that result from the innovation diffusion process. To achieve this objective, a sequential mixed-method research design combining quantitative and qualitative analysis techniques was employed. The quantitative techniques included a correlation analysis to identify the strong factor relationships, followed by Structural Equation Modelling (SEM) to determine the critical pathways for enhancing innovation diffusion and ultimately heightened levels of client satisfaction. Following path model extraction, qualitative interviews with five Australian AED firms were conducted. The interview findings confirmed the uncovered significant pathways, and provided in-depth insights into how the improvement of critical enabling factors could leverage improved innovation diffusion outcomes and business performance. [Copyright &y& Elsevier]