Considering the role and importance of innovation in the performance of organizations in general and banking institutions in particular, the current work aims at identifying effective factors in the success of innovation management system in Iranian Banks, about which exists a scarcity of research in comprehensively identifying these organizational factors. Having examined several potentially suitable research methodologies, the Grounded Theory is chosen as a suitable approach to determine a comprehensive understanding of the main drivers of innovation management success in Iranian Banks. Theoretical and snowball sampling are used to recruit fifteen participants from across the country. The result of this study is a theory that explains the main drivers of innovation management success in Iranian banks. Innovation supportive leadership, market and customer orientation, information technology management, intellectual opportunities, as well as innovation opportunities and process management are the main factors for innovation management success in Iran’s banking industry. These factors contribute to the common factors mentioned by other studies, including communication, cost, and HR management, and offer a more specific approach to innovation management. Findings can help banks in the evaluation of effective factors in innovation management and provide the necessary ground for designing practices for improvement.