The clustering of propagating signals in indoor environments can influence the performance of multiple-input multiple-output (MIMO) systems that employ multiple-element antennas at the transmitter and receiver. In order to clarify the effect of clustering propagation on the performance of indoor MIMO systems, we propose a simple and efficient indoor MIMO channel model. The proposed model, which is validated with on-site measurements, combines the statistical characteristics of signal clusters with deterministic ray tracing approach. Using the proposed model, the effect of signal clusters and the presence of the line-of-sight component in indoor Ricean channels are studied. Simulation results on channel efficiency and the angular sensitivity for different antenna array topologies inside a specified indoor scenario are also provided. Our investigations confirm that the clustering of signals significantly affects the spatial correlation, and hence, the achievable indoor MIMO capacity.