Green supply chain management has emerged as a critical strategic approach for improving environmental sustainability and organizational performance in manufacturing firms. However, existing literature remains limited and missed the mechanisms and contextual conditions that shape these relationships. This study examines the relationship between green supply chain management and organizational performance through green operational capability as mediating mechanism, while considering perceived governmental environmental signaling intensity as moderated mediator. The study employed a quantitative research approach with explanatory research design. The data were collected from 327 respondents who are working in manufacturing factories. Data were analyzed using Smart PLS to test both the measurement and structural models. The findings show that green supply chain management has significant effect on organizational performance and green operational capability. Green operational capability also significantly enhances organizational performance and mediated the relationship between green supply chain management and organizational performance. Furthermore, perceived governmental environmental signaling intensity significantly strengthen the relationship between green supply chain management and green operational capability then influence the organizational performance which confirm moderated mediation effect. This study suggests that manufacturing firms institutionalize green supply chain management as a strategic capability. Policymakers should strengthen clear and consistent environmental signaling to enhance firm responsiveness. Managers should develop green operational capabilities to effectively translate sustainability practices into improved organizational performance and long-term competitive advantage.