Modern firms are reconsidering the 20th century model of mass production, mass consumption, and mass disposal, and in the midst of the need to adopt a sustainable model of economic growth that minimizes harm to the world. In response to such a social order, this paper examines the relationships between the environmental and economic performances of the construction industry in the Shikoku region. We discuss alternative functional relationships between them through the theory of organizational capabilities. Based on the findings of an empirical study, we propose the introduction of a funnel role of organizational capabilities within the relationship between environmental and economic variables, taking a different viewpoint from the Porter hypothesis. Finally, our study presents a tentative conclusion clarifying a part of the causation, and proposes a model to understand the interdependence between sustainable strategy and organizational capability.