Blockchain has revolutionized the field of supply chain management, allowing firms to optimize their operations and achieve enhanced levels of efficiency and environmental responsibility. This study investigates the relationships between the functionalities of the blockchain-enabled Internet of Things (IoT) and many aspects of the supply chain, namely, supplier integration, internal integration, customer integration, and sustainable logistic capabilities. It also analyses the impact of these correlations on the supply chain performance and sustainability of firms. This study is grounded in an empirical inquiry carried out using a questionnaire survey of the retail industry in Pakistan. Partial Least Squares Structural Equation Modelling (PLS-SEM) was employed to analyze the data. The findings indicate a direct correlation between the use of BC-enabled Internet of Things (IoT) capabilities and the integration of the supply chain, as well as logistic capabilities. Furthermore, there is a strong and meaningful correlation between blockchain-enabled supply chain integration and sustainable logistic capabilities and firm performance. The research findings indicate that the combined impact of digital innovations results in higher levels of corporate performance and sustainability. By embracing digitization through blockchain technology, business organizations can attain supply chain excellence. This integration enhances the adoption of environmentally beneficial actions, minimizes waste, and decreases carbon emissions across supply chains, thus reinforcing the connection between sustainable firm performance and environmental sustainability. As a result, the enterprises may execute sustainably through improved logistical capabilities and effective integration. The results hold great theoretical and practical significance for improving supply chain management efficacy and accomplishing multiple SDGs, including SDG-8, SDG-9, SDG-11, and SDG-12.