| At the present time a very high competition among the industry players require each industry to further enhance the ability of competing. Innovation is one of the best ways to improve the company's ability to compete. Therefore the study of innovation management in a company is the subject of an interesting study. This research aims to investigate the influence of internal and external factors on the level of corporate innovation, and also investigated the influence of corporate innovation for the company's product quality, using a "7 S Mc.Kinsey & Co." which includes strategy, structure, systems, style, staff, shared values and Skills. While the influence of external factors were measured using a model organization "Porter's Five Forces" is the intensity of competition, threat of new entrants, threat of substitutes, buyer power and supplier power. Internal and external factors will likely provide a positive impact or no positive effect on the level of innovation, and the rate of innovation will have a positive influence or not making a positive impact on the quality of the company's products. The research was done by taking the data in the PT Sumber Cakung, a company engaged in security printing. Through a questionnaire containing items measuring employee perceptions statement on the level of decision-makers to influence internal and external factors on the level of corporate innovation, and also the influence of the company's innovation on the quality of the company's products. Data processing is performed by the method of Structural Equation Modeling with Partial Least Square approach. From the results of this study indicated that internal factors have a positive influence on the level of innovation, while external factors have a positive influence on the level of innovation, and also the level invoasi a positive impact on the quality of the company's products. |