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AbstractThe drivers of eco‐innovation (EI) have been the focus of much research in the past. Some of these drivers have been external to the firm, such as regulation, whereas others have been internal, including its resources and capabilities and its environmental strategy. However, the analysis of the impact of those drivers on EI has too often been carried out as if they were separated from each other. In reality, the EI drivers are likely to interact. This paper tries to cover this gap in the literature using a holistic and integrated approach. Survey data from 97 chemical firms were analyzed using partial least squares to determine the critical drivers of EI and their interconnections. Our results indicate that, in fact, the impact of some drivers might not be direct but is mediated by their influence on other drivers. This is the case with environmental collaboration, environmental knowledge, green skills, consumer pressure, and export behavior, which have an indirect effect on EI through their impact on environmental strategies. Therefore, our results suggest that environmental strategy is a central mediator and a powerful driver for the entire model.