Syed Mehmood Hasan, Waqar Ahmed, Idrees Waris, Arsalan Najmi
ABSTRACT This study aims to explore the increasing concerns in industries about environmentally friendly processes and understand the role of organization compatibilities in adopting green supply chain management (GSCM) practices and their effect on the organization's performance. Nonrandom purposive sampling was carried out to collect the responses of target professionals, and a closed‐ended questionnaire was also provided to gather data on different manufacturing companies. Further, data were analyzed using PLS‐SEM. Organizational compatibilities for any firm are as crucial as other compatibilities, which lead mainly to internal environmental management systems of organizations to boost the application of green supply chain practices. However, the organization's operational and environmental performance is directly related to GSCM activities. Industrialists and environmentalists must exert more institutional influence on organizations to meet the requirements for environment‐friendly practices and boost their organization's performance. This should motivate all stakeholders and policymakers to add these practices to their processes and SOPs. It is pertinent to understand the influence of organizational capabilities on GSCM efforts to enhance organizational productivity and meet environmental performance. Therefore, this research aims to fill the gap in GSCM literature by clarifying how operational and cultural capabilities influence specific GSCM activities that lead to improved organizational performance.