This study aimed to determine the effect of internal and external factors on firm performance through eco-innovation. This research is a quantitative descriptive study with associative research methods and explanatory research. Data collected through a survey by questionnaires. There are 113 companies at PT. Surabaya Industrial Estate Rungkut area as a sample. Data analysis in this study uses Structural Equation Modeling (SEM) with the Partial Least Square approach using the WarpPLS application. The results show that eco-innovation mediates the influence of firms capability and market pressure on firm performance.
Key words: eco-innovation, firms capability, market pressure, firm performance
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