This research aims to study how much a company s innovation performance, influenced by technological activities, skill of the workforce and external links, affects its financial performance, considering the impacts of innovation on cost and market. For this, the study used surveys with Colombian service companies, including commerce, carried out by the Colombia s National Administrative Department of Statistics. After the data treatment, there were 238 companies left that answered the surveys carried out in the period between 2012 and 2016. For the use of the database, a measurement model was developed with the purpose of validating the variables that represent each construct. Then, a theoretical structural model and some hypotheses were proposed and the tests were performed quantitatively using the multivariate technique known as Structural Equation Modeling (SEM). Research has shown that technological activities, skill of the workforce and external links have a positive relationship with innovation performance. Innovation also has a positive impact on market-related issues, but, contrary to expectations, it does not influence issues that affect cost. Finally, both market and cost impacts are directly and positively related to the financial performance of companies, as predicted in the model. Thus, the results of this research suggest that, for service companies to improve financially from innovation, it is necessary to invest first in technological activities, skill of the workforce and strengthen ties with external actors, impacting market-related factors through improved innovation performance.