Is managerial coaching a source of competitive advantage? Promoting employee self-regulation through coaching

Abstract

The present business environment of extreme competition and rapid changes has motivated scholars to identify variables that can help companies stand up to and overcome these challenges. Research on self-regulation found that self-perceptions of efficacy not only can mediate the effects of external influences on results, but can also regulate employees' initiation, persistence and choice of purposeful actions. Within the self-regulatory framework, this paper specifically explores the role of managerial coaching as an antecedent of employee self-efficacy and performance. Using a sample of 122 Financial Advisors, we found that managerial coaching can increase employee self-efficacy, which in turn fully mediates the effects of coaching on results and behavioural performance. We suggest that, if generalised use of coaching by managers can increase employees' self-efficacy (which is instrumental in increasing employees' initiation and persistence of coping behaviour when faced with challenges and problematic situations), then the use of managerial coaching by an organisation might promote employee self-regulation, increase the organisation's general resilience and, thus, can be considered a sustainable competitive advantage.