This study focuses on the link between organizational unlearning and innovation capabilities and explores how this relationship might be managed within an innovative firm. In order to gain a clearer insight into to the influence of a firm’s culture on organizational unlearning and its innovation capabilities, a research model was developed that employs the Competing Values Framework (Cameron & Quinn, 1999). In this model, the influence of a firm’s cultural typology on unlearning and innovation is conceptualized and hypotheses are developed. The model was tested empirically using a sample of 145 firms drawn from the Spanish automotive components manufacturing sector and the relationships between the constructs were assessed using the partial least squares path-modeling approach. The results reveal that each distinct organizational culture exerts a different impact on the innovation and unlearning outcome variables. In particular, an adhocracy culture is associated closely with innovation capabilities while a market culture exerts a significant influence on organizational unlearning