This article analyses the relationship among the environmental behavior of Japanese firms, external factors, and economic・environmental performance. Since 1990s, there are many efforts to investigate the relationship between economy and environment. But most of these researches did not explain causal relationship between economy and environment. In this paper, we analyzed the relationship based on the Resource-Based View framework of management. This approach can explain actions of firms and environmental results, emphasizing the process and organizational capabilities. The findings of analyses indicate that external factors such as government, community, and customers are not necessarily effective to enhance the positive action by firms to improve the environmental performance. Rather, it shows corporate strategy stimulates the organizational practices for environment and then leads to better environmental performance.