Purpose Based on natural-resource-based view (NRBV), the purpose of this paper is to clarify the dimensions of green procurement and the mechanisms involved in the relationship between green procurement and firm performance. Design/methodology/approach Secondary data were to measure all the variables in 206 Chinese A-share companies’ annual reports, social responsibility reports, environmental reports, and sustainability reports, which were published by Guotai Junan Securities Co., Ltd and Wind Information Co., Ltd. Findings The results indicate that although both product-based and process-based green procurement have a positive effect on firm performance, these Chinese companies focus on the impact of product-based green procurement on their operational efficiency as well as the moderating role played by stakeholder satisfaction. Originality/value Although studies on green procurement have increased in recent years, issues such as how to measure green purchasing behaviors and how green procurement affects firms’ operational and financial performance are still unexplored. Based on previous literature, two dimensions have been defined for green procurement in this study to develop corresponding measurements, namely, product-based green procurement and process-based green procurement. Besides, this study considers operational efficiency as the mediator and stakeholder satisfaction as the moderator when constructing a new conceptual model to illustrate the relationship between green procurement and firm performance.