This study endeavors to explore the driving forces of process eco-innovation and its effect on company performance by adopting an integrative approach. We focus on process eco-innovation, which pertains to technological and non-technological solutions that result in a reduction of material and energy costs for companies. In this regard, the study sheds light on the drivers and outcomes of process eco-innovation adoption, using data collected from 223 Slovenian companies. The results reveal that certain determinants (i.e., competitive pressure, customer demand, managerial environmental concern, command-and-control instrument, and economic incentive instrument) are conducive to the deployment of process eco-innovation. Empirical evidence reveals competitive pressure as the most influential driving force of process eco-innovation, followed by managerial environmental concern and customer demand. Effectiveness in spurring process eco-innovation is also found to be a command-and-control instrument and an economic incentive instrument, while expected benefits do not spur process eco-innovation. Pertaining to the outcomes of process eco-innovation adoption, we can conclude that it pays to be eco; process eco-innovation is worthwhile in terms of company profitability, growth, and competitive benefits. These findings suggest several courses of action for both policy makers and companies. Hence, we conclude by providing implications for both. •We explore the drivers and outcomes of process eco-innovation.•Competitive pressure is the strongest driver of process eco-innovation.•Several other drivers are conducive to process eco-innovation implementation.•Process eco-innovation results in gain in competitive benefits.•Process eco-innovation leads to higher company growth and profitability.