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 selfregulatory 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 generalized use of coaching by managers can increase employees' selfefficacy (which is instrumental in increasing employees' initiation and persistence of coping behavior when faced with challenges and problematic situations), then the use of managerial coaching by an organization might promote employee self-regulation, increase the organization's general resilience and, thus, can be considered a sustainable competitive advantage.
Practice points• This study is particularly relevant to the practice of managerial coaching and its application in organizations. The main contribution is that managerial coaching can increase employee's self-efficacy, behavioural performance and results performance.• Previous research in self-regulatory behaviour found that people with high self-efficacy set higher and more difficult goals, are more committed to them, initiate actions to cope with problematic situations, spend more effort, persist longer in goal pursuit and make better choices of activities and settings.• Accordingly, the systematic use of managerial coaching by an organization can increase the self-regulatory behavior of all its employees through its direct effect on self-efficacy, thus increasing their collective effort, their resilience when faced with challenging circumstances and their flexibility to deal with those circumstances and implement new solutions. As such, managerial coaching can be considered a dynamic competitive advantage of the organization.