["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis research explores the drivers of eco‐innovation adoption in multinational companies operating in Moroccan free zones. Using semi‐structured interviews with 24 organizations, we examine the relationship between external influence and internal capabilities in eco‐innovation projects. Through employing Atlas.ti for systematic coding and analysis, this study demonstrates a hierarchical structure of eco‐innovation drivers functioning at multiple levels. The results indicate that eco‐innovation adoption is influenced by both internal and external factors (such as normative pressures and regulatory requirements), with internal drivers (196 citations) outnumbering external ones (151 citations). The analysis revealed three key mechanisms: (1) a hierarchical influence structure that permits external pressures to move within organizational levels; (2) dynamic interactions among drivers that generate feedback loops that reinforce one another; and (3) certification adoption that bridges the gap between internal capabilities and external requirements. This study expands on institutional theory and the resource based‐view by showing how companies turn external pressures into internal capabilities in an emerging market context. The certification bridging mechanism represents a novel contribution, highlighting how ISO standards act as responses to institutional demands as well as accelerators of internal capability development. The results, which emphasize proactive capability building and strategic certification prioritization, provide useful suggestions for companies operating in export‐oriented zones. The finding showcases the significance of harmonizing regulations between developed and emerging economies for policymakers. The study emphasizes also strategies for sustainable industrial development in emerging economies while filling in methodological and geographic gaps in the literature on eco‐innovation.\n"]