Clarifying the effect of green demarketing on sustainable performance in the service industry: Does green learning matter?

While green demarketing assists companies in facilitating environmental practices, prior studies also support green demarketing as a key factor in sustaining a company's performance. However, there is limited knowledge about the effects of green demarketing on various aspects of sustainable performance, including environmental performance, economic performance, and social performance. Additionally, research on green demarketing in achieving sustainable performance through the mediating role of green learning is scarce. This study addresses these knowledge gaps by investigating the correlations between green demarketing, green learning, and sustainable performance. Data were collected through a survey of 243 service companies that have implemented a green demarketing (GD) strategy. Structural equation modeling (SEM) was used to test both direct and mediating effects between constructs. The results indicate that both green demarketing and green learning significantly impact the three sub-constructs of sustainable performance. This study provides important insights for managers in service industries regarding the potential benefits of implementing a green demarketing strategy. Furthermore, the findings suggest that green learning not only fully mediates the relationship between green demarketing and social performance, but also partially mediates its links with environmental and economic performance.