Purpose This study investigates the impact of environmental awareness, regulatory pressure, and stakeholder expectations on the adoption of Green Supply Chain Management (GSCM) practices in SMEs, emphasizing the mediating role of environmental engagement, which remains underexplored. Design/methodology/approach A quantitative survey of 220 SME managers from manufacturing and service sectors was analysed using structural equation modelling (SEM) via SmartPLS to test hypotheses, mediation, and moderation. The study integrates the Theory of Planned Behaviour (TPB), Institutional Theory, Stakeholder Theory, and the Natural Resource-Based View (NRBV) to explain how cognitive, normative, and coercive pressures interact with organizational capabilities to drive GSCM adoption. Findings Green awareness indirectly influences GSCM adoption through environmental engagement, while regulatory pressure exerts both direct and indirect effects. Environmental engagement fully mediates the awareness → adoption pathway and partially mediates regulation → adoption. Business type moderates the awareness–engagement relationship, with manufacturing SMEs exhibiting stronger engagement responses than service SMEs. The model demonstrates high explanatory power for GSCM adoption (R2 = 0.711) and environmental engagement (R2 = 0.715). Research limitations/implications The limitations include self-reported, cross-sectional survey data, which may affect causal inference and introduce bias. Future studies should incorporate longitudinal designs and examine moderating variables such as firm size, industry type, and economic incentives. Practical implications SME leaders should invest in awareness and engagement programs, while policymakers should design incentive-based initiatives to support voluntary adoption of green practices. Strengthening GSCM adoption contributes to environmental protection, public health, and sustainable development, particularly in contexts with limited regulatory enforcement. Originality/value By highlighting environmental engagement as a behavioural mechanism and integrating TPB, Institutional Theory, Stakeholder Theory, and NRBV, the study provides new insights into firm- and policy-level mechanisms that facilitate sustainability transitions in SMEs.
Hamid et al. (Thu,) studied this question.