Firms are increasingly recognizing that greening supply chain is a key to improving environmental performance. In the green supply chain practices, firms are actively involving their partners in attempts for achieving higher performance results. In its implementation, a specific inter-firm relationship is manifested through asset specificity. This study aims to explore the effect of green supply chain on environmental performance, and how asset specificity would influence their relationship. Research results based on a sample of 92 manufacturing firms from various backgrounds of industry in Taiwan show that internal environmental management program significantly influences green supply chain implementation which includes green purchasing, green design and operations, and cooperation with customer. Furthermore, those three variables contribute significant influence toward environmental performance. However, there is no evidence that asset specificity toward suppliers and buyers have significant influence to strengthen green supply chain practices effect on environmental performance. The study contributes to green supply chain and environmental practices that managing key resources and drivers with supply chain partners leaves many opportunities for environmental performance improvement.

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