This study investigated crucial green supply chain management (GSCM) practice dimensions and firm performance based on restaurants firms in Taiwan. On the basis of a factor analysis, four green supply chain management dimensions were identified: corporate environment policy, green packing, green product, and economic transport. This study investigated crucial GSCM practice dimensions (including corporate environment policy, packaging waste, economic transport, and product recycling), green capability and organizational performance. The results shown: first, green practices in restaurants in Taiwan have an indirect effect on firm performance through green capability; second, when the ability of suppliers of green and green capability is at a higher degree, it will contribute to organizational performance, namely environmental and economic performance. Finally, green practices could be a key driver of green capability and it should be a priority in restaurants.

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