The Mediating Effect of Eco-Innovation on the Influence of Firm’s Capability and Market Pressure to Firm Performance

Abstract

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 firm’s capability and market pressure on firm performance.