In this study, we established hypotheses regarding the effects of corporate environmental response activities on environmental response capabilities and performance based on prior research, and conducted empirical analysis on Korean manufacturing firms using structural equation modeling. The results revealed that environmental regulatory compliance activities undertaken in response to government environmental regulations imposed in the political and legal context had a negative effect on performance but a positive effect on environmental response capabilities. Environmental management innovation activities undertaken in response to market and competitive pressures imposed in the economic context were found to have a positive effect on both the creation of environmental response capabilities and the enhancement of performance. Furthermore, the study demonstrated that environmental response capabilities generated through corporate environmental response activities can serve as a source of performance. The implications of these results for the government and firms are as follows. For Korean firms to enhance performance through voluntary and proactive environmental management innovation activities, the government must transform the current environmental regulations—which are predominantly pursued through direct regulation—in a direction that maximally stimulates corporate innovation. Additionally, the government should implement policies providing sustained financial, technological, and educational support and awards to firms that attempt creative innovation through proactive environmental activities, as well as pursuing environmentally friendly procurement policies and fostering environmental markets. Meanwhile, firms need to make efforts to transform their corporate constitution into an environmentally friendly one through voluntary and proactive environmental management activities, and furthermore, adopt a progressive posture of identifying new business opportunities and creating new demand in relation to environmental issues.