The increasing pressures from government, market, and firms’ internal management itself have urged the adoption of green supply chain management. Firms try to improve their environmental situation through green operation, supplier selection, and through collaboration with customer and supplier. The purpose of this study is to investigate the main driver of green supply chain management and how it will affect environmental and economic performance of the firm in developed and developing countries from various industry backgrounds. The results obtained from 79 samples in developed countries and 89 samples in developing countries showed that regulatory pressures positively influences the implementation of green supply chain management, with internal regulation as a main driver. The adoption of green supply chain management also proved to improve environmental performance, but it also has consequences of increased investments in terms of firms’ economic performance. This study contributes in providing insight to successfully implement green supply chain management, top management / internal firm regulation is the key factor. Firms will also benefit in implementing green supply chain management by achieving improved environmental performance.

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