Management of the natural environment is becoming an increasingly important
issue to manufacturing firms, yet their managers are also challenged to im
plement changes that improve competitiveness. To meet this challenge, a new
construct grounded in the resource-based view of the firm and manufacturin
g strategy has been developed: the environmental technology portfolio. The
composition of a plant's portfolio-the pattern of its investment in environ
mental technologies in manufacturing over time-was found to significantly a
ffect both manufacturing and environmental performance for a sample of manu
facturing plants.