The conceptual framework of Schein’s multilayered model is practical and intuitively appealing, but there is a dearth of empirical research that considers the model. In the present study, a rationale for an empirical model is developed and tested by applying Schein’s conceptual model,. We provide a strong empirical support for our hypotheses using data from a sample of approximately 100 principals of law firms. The hypothesized relationships were supported. The main findings of this paper show how the impacts of values supporting innovation on measures of firm performance are partially mediated by layers of organizational culture such as norms, artefacts, and innovative behaviours.