Design is a social phenomenon and researchers suggest that social interaction, negotiations and communication between designers are essential to initiate creativity. Within the design studio environment, a number of factors affect the healthy social interaction and design negotiations, such as the teaching style of tutors and the culture that governs a design studio’s environment. This may in turn affect the utilization of the outcome of negotiations in the design project. Design studio students from the third to fifth years at the College of Architecture, University of Dammam (UD), the Kingdom of Saudi Arabia (KSA), were surveyed to find out how far the design studio’s culture and communication would impact the production of innovative design projects. The results show that frequent communication and the establishment’s shared grounds are essential to develop knowledge and positively influence the design outcome. On the other hand, the research found that negative qualities on a personal level and on that of a design studio environment would hinder a student’s creativity. However, to develop students’ design/innovative abilities, the researcher recommends that certain measures should be considered. These would include transforming the design studio into an interactive and friendly learning environment, adjusting the teaching methodology, and developing interactive communication abilities of students and tutors.