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Purpose The concept of green supply chain management (GSCM) is gaining popularity in developing countries due to the environmental and economic impact along with increasing awareness of environmental safety. Enterprises are trying to express their sincere commitment toward green practices. The purpose of this paper is to examine the impact of GSCM on green and economic performance of the firm under the influence of leadership and institutional pressures. Design/methodology/approach Conceptual model was developed from previous research works to understand the driving forces of green and economic performance which had inconsistent findings in the literature. Data were collected from 174 leading ISO 14001 certified manufacturing firms in Pakistan by using a structured questionnaire. Partial least squares-structural equation modeling is used for testing the hypotheses. Findings The statistical results indicate that the leadership and institutional pressures influence the firm for adoption of internal green practices and external green collaboration. The statistical results also suggest that green practices significantly improve firm’s green and economic performance. However, firm’s external green collaboration does not significantly affect green performance, but it improves green performance significantly. Research limitations/implications This research is conducted on Pakistan as a case of highly populated developing country. Originality/value This research presents the empirical evaluation of the influence of leadership and institutional pressure on green practices and improved green and economic performance. The results offer useful understanding for SCM practitioners seeking to adopt GSCM practices. The results also provide policy insights for regulators, organizations and legislators to further promote GSCM.

Purpose Environmental concerns are rapidly increasing in the industries across the world. They are a more serious issue, especially, in the developing countries due to the prevalence of old practices and outdated technology. The purpose of this paper is to understand the role of institutional pressure and environmental orientation of the firm in adopting green supply chain management (GSCM) practices, and thereon the effect of GSCM on the firm’s performance. Design/methodology/approach By employing survey methodology using purposive sampling technique, the data were collected from 229 respondents who were working as supply chain management professionals in various manufacturing firms. The hypotheses were tested through partial least square structural equation modeling (PLS-SEM). Findings The findings reveal that both institutional pressures and environmental orientation significantly impact GSCM practices. The result further shows that GSCM practices have a positive effect on the environmental and economic performance as well as customer effectiveness. Originality/value Industries in the developing economies like Pakistan are reluctant to implement GSCM practices due to the perception of ambiguous financial implications. This study signifies that institutional pressures act as an effective driving force for change management and compliance.