Environmental innovations and financial performance of Japanese automotive and electronics companies

• Main Authors: Cortez, Michael Angelo A., Cudia, Cynthia P.
• Format: text
• Published: Animo Repository 2012
• Subjects: Environmental auditing > Japan; Environmental responsibility > Japan; Automobile industry and trade—Japan > Finance; Automobile industry and trade—Japan > Environmental aspects; Accounting
• Online Access: https://animorepository.dlsu.edu.ph/faculty_research/2074
• Institution: De La Salle University

Sustainability reporting as facilitated by the Ministry of Environment’s environmental accounting and reporting guidelines has been standardized in Japan for over a decade now. Product and process improvements pertinent to environmental innovations are measured in environmental costs. Following literature on the resource-based view perspective, this chapter describes the positive impact of environmental innovations on financial performance. Alternatively, the slack availability of resources perspective describes the reverse effect of the relationship, i.e. financial performance positively affects investments in environmental innovations. Finally, we investigate the existence of virtuous cycles between the constructs and how tangible and intangible benefits accumulate within the context of greening businesses. © Springer Science+Business Media Dordrecht 2012.