Zhen Yan, Doğan Gürsoy, Zuraina Dato Mansor, Wei Chong Choo
Purpose This study aims to explore the cascading influence of managerial coaching behavior (MCB) on employee service recovery performance (SRP) within the tourism and hospitality enterprises. Using a multilevel mediation model, it examines the cross-level indirect relationship between MCB and SRP, specifically how this relationship is sequentially mediated by surface acting and compassion fatigue. Design/methodology/approach The research analyzed data from multiple sources comprising 52 supervisors and 352 employees using multilevel structural equation modeling, which supports the proposed cross-level mediation model. Findings Individual-level SRP is strongly predicted by group-level MCB. In addition, the results indicate a significant sequential cross-level indirect pathway, wherein MCB influences SRP through its impact on surface acting and, subsequently, compassion fatigue. Practical implications Organizations should promote active engagement in MCB among managers and supervisors, as their involvement positively influences subordinates’ performance in service recovery situations. In addition, management should implement training programs that help staff reduce surface acting by fostering genuine empathy and understanding toward guests, thereby alleviating compassion fatigue. Originality/value The current research offers novel empirical evidence of a cross-level effect of MCB on SRP through the sequential mediating roles of surface acting and compassion fatigue within the tourism and hospitality sector. In doing so, it advances both conservation of resources theory and coaching literature in this context.