Enabling coercive drivers with green supply chain management practices to gain performance nexus through external collaboration and monitoring

Businesses primarily provide products or services, expand operations, and generate profits. However, they frequently disregard the environmental and economic consequences of their actions as they strive for profitability and growth. Consequently, the main objective of this research was to examine the impact of a multifaceted supply chain function on performance. Data were collected from 415 respondents employed in various manufacturing companies within a developing economy. The hypotheses were evaluated using Structural Equation Modeling (SEM) through Smart PLS. The findings discovered that ten of the thirteen hypotheses tested were supported, while three were not. Coercive drivers were observed to significantly influence Businesses, primarily green supply chain management practices (GSCMP) adoption. Similarly, GSCMP significantly impacted external collaboration (EC) and external monitoring (EM). Additionally, GSCMP, EC, and EM significantly affected operational, financial, and environmental performances, respectively, except for GSCMP’s impact on operational performance. The performance constructs’ results varied in their significance and insignificance. These results underscore managers’ importance in responding to external pressures by implementing environmentally friendly practices. The study suggests that firms should integrate green initiatives into their collaborations with suppliers and customers to achieve a comprehensive impact that enhances sustainable performance.