| Until recently, Japanese direct investment in U.S. manufacturing has been one of the most significant components of total foreign investment. A greater impact may have been achieved by the diffusion and hybridization of Japanese management methods, commonly known as “lean production.” Attributes of these systems such as a focus upon efficiency and continuous improvement provided a competitive advantage that allowed Japanese corporations to penetrate and capture technology markets formerly dominated by Western industry. A number of writers, supported by empirical research, have also observed that these same characteristics provide a potential for environmental benefits in terms of resource productivity and pollution prevention. These concerns are central to an emerging perspective, known as ecological modernization, that represents an evolutionary change in industry's and government's approach to environmental issues from reactive to proactive.; This study is grounded within the theoretical framework of ecological modernization, and explores the role of three key features of this movement, eco-efficiency, industrial ecology, and environmental management systems, as part of a strategy to compare the environmental performance of Japanese transplants to non-Japanese facilities in the United States. The study area consists of the four states, Indiana, Ohio, Kentucky and Tennessee, which represent a dense concentration of Japanese manufacturing investment. The study employs both quantitative and qualitative methodologies, and has three primary objectives: (1) to construct an eco-efficiency indicator that uses readily available data and is applicable to a broad range of firms; (2) to compare the performance of Japanese and non-Japanese firms using the eco-efficiency and other appropriate indicators, and through survey techniques and case studies to develop an understanding of environmental policies and practices at the firm level; and (3) to provide a comprehensive account of the geographical distribution and characteristics of Japanese investment in the region. |
