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Companies in today's business environment, including SMEs, are expected to produce a product that is creative and innovative. However, there is still a lack of sequential guidance about how to manage innovation particularly for SMEs in creative industry. The objective of this research is to develop a research model for managing innovation by outlining key success factors in creative industry through analyzing some of the conditions of successful SMEs in Bandung, Indonesia. In so doing, the method used in this study is a case study research methodology. Cases of SMEs in the creative industries were taken based on several criteria, including awards received among others. This was done to ensure whether the selected SMEs represent those with best practices. Data were collected for each company using semi-structured interviews, archival documents, public documents, and direct observations. Cases were selected on each of the fifteen sub-sectors in the creative industries in the city. The main finding of this study is a model with three stages for managing innovation in the creative industries. The novelty of this study is that such model, we believe, has never been developed in the context of creative industry in Indonesia. From this study we hope that this stage-based model can serve as a reference for creative industry practitioners to sustain the growth of their business.