Today, organizations seek competitive advantage by improving their environmental performance
through meeting environmental standards, enhancing customers’ knowledge on this issue and
reducing negative environmental effects of their products and services. The present paper aims at
explaining the effect of green supply chain actions on competitive advantage of pharmaceutical
companies listed in Tehran Stock Exchange. This descriptive researched is surveying a population
composed of experts of pharmaceutical companies listed in Tehran Stock Exchange. Research
questionnaire was distributed among 175 individuals and a total number of 172 questionnaires
were collected. Required data was gathered using a questionnaire with standard components
validity of which was confirmed by experts’ opinions. A GIF indicator of higher than 0.90 in
structural equations further confirmed the validity. A Cronbach’s Alpha of 70% corroborated
instrument reliability. Findings showed that green supply chain actions have a significant effect
on competitive advantage of pharmaceutical companies listed in Tehran Stock Exchange.
Ultimately, results indicated that green supply chain leads to faster delivery, reduced delay,
decreased costs and enhanced quality. Moreover, by creating more added value for customers
because of offering green products, it leads to competitive advantage.