Figure 7. According to Klassen and McLaughlin (1996) the linkage of environmental management to firm profitability encompasses market gains with cost savings. Strong environmental management systems coupled to organizational operations designed to minimize environmental impact(s) leads to improved (environmental) efficiency. Together they provide improved financial performance. According to Christmann (2000 p. 666) “Firms that are able to accumulate resources and capabilities that are rare, valuable, nonsubstitutable, and imperfectly imitable will achieve an advantage over competitors.” In her study, she applied the resource-based view of the firm which incorporated the concept of complementary assets “which are resources or capabilities that allow firms to capture the profits associated with a strategy, technology or innovation.” An ISO 14000 series voluntary environmental management system (VEMS) strategy is just such an innovation. “In the context of environmental strategies, complementary assets can be defined as assets that are required to gain competitive advantage from the implementation of the best practices of environmental management” (Christmann, 2000 p. 666).