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Environmental Innovations and Financial Performance of Japanese Automotive and Electronics Companies

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Book cover Green Growth: Managing the Transition to a Sustainable Economy

Part of the book series: Greening of Industry Networks Studies ((GINS,volume 1))

Abstract

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.

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Notes

  1. 1.

    Tobin’s q is the ratio between the market value and the replace value of the same asset valued from a financial market perspective.

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Acknowledgements

We wish to acknowledge the research assistance by Christopher James Cabuay; the technical support of John Paolo Rivera, and overall direction by Tereso S. Tullao, Jr. of De La Salle University, Manila, School of Economics and the Angelo King Institute of Business & Economic Research and Development.

Likewise, we wish to thank the various academic societies instrumental in the development of this chapter: The Greening of Industry Network (GIN) Conference, Seoul, South Korea, 2010; the International Conference on Business, Economics and Information Technology (ICBEIT) Seoul, South Korea, 2010 and Guam, 2011; and the Asia Pacific Business and Innovation Technology Management Conference (APBITM), Beijing, China, 2011.

Author information

Authors and Affiliations

  1. Graduate School of Management, Ritsumeikan Asia Pacific University, 1-1 Jumonjibaru, Beppu, Oita, 8748577, Japan

    Michael Angelo A. Cortez

  2. College of Business, De La Salle University, 2401 Taft Ave, Manila, 1004, Philippines

    Cynthia P. Cudia

Authors
  1. Michael Angelo A. Cortez
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  2. Cynthia P. Cudia
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Corresponding author

Correspondence to Michael Angelo A. Cortez .

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Editors and Affiliations

  1. Cardiff University, BRASS, Parc Place 55, Cardiff, CF10 3AT, United Kingdom

    Diego A. Vazquez-Brust

  2. Clark University, Graduate School of Management, Main Street 950, Worcester, 01610-1477, Massachusetts, USA

    Joseph Sarkis

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Cortez, M.A.A., Cudia, C.P. (2012). Environmental Innovations and Financial Performance of Japanese Automotive and Electronics Companies. In: Vazquez-Brust, D., Sarkis, J. (eds) Green Growth: Managing the Transition to a Sustainable Economy. Greening of Industry Networks Studies, vol 1. Springer, Dordrecht. https://doi.org/10.1007/978-94-007-4417-2_9

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