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Eco-industrial parks are the real-world implementation of green supply chain management. There is a growing need to include the circular economy concept into supply chain management as a means of striking a better economic, social, and environmental balance, as the importance of the external sustainability of the supply chain is challenging. Using 357 questionnaires filled out by enterprises in China's eco-industrial parks, we examine the connections and causal relationships between resource efficiency, environmental impact, green supply chain management, and circular economy. To learn how a green supply chain's circular economy affects resource efficiency and environmental performance in the China region, this study makes use of the instrumental variable approach (structure equation model (SEM)). The results of this study indicate that environmentally responsible supply chain management and circular economy have beneficial effects on environmental performance and resource efficiency. The management of the GSC has a negative and small impact on economic performance, although each of the components is a substantial contributor to better performance in the environment. Conclusions from this study will assist those responsible for making decisions within supply chains in developing a plan that is useful for increasing a company's performance along economic and environmental dimensions. This study not only broadens our understanding of the factors that influence green supply chain management but also offers theoretical direction for the implementation of successful green production practices by businesses located in eco-industrial parks., (© 2024. The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.)