Emotional Contagion in the Hospitality Industry: Unraveling Its Impacts and Mitigation Strategies Through a Moderated Mediated PLS-SEM Approach

Abstract

Emotional contagion is a common phenomenon among hotel employees, creating an environment of shared emotions that can influence work-related outcomes such as job performance, job satisfaction, and psychological well-being. However, strategies to mitigate or regulate its effects in hotels remain underexplored. This quantitative study used the PLS-SEM data analysis approach to examine the influence of emotional contagion on these outcomes and explores how psychological resilience and leader–member exchange (LMX) can moderate its impact. Specifically, this study examines (1) the direct influence of emotional contagion on job satisfaction, job performance, and psychological well-being; (2) the mediating role of psychological well-being in the links between emotional contagion and both job performance and job satisfaction; and (3) the moderating roles of LMX and psychological resilience on the relationships between emotional contagion, psychological well-being, job satisfaction, and job performance. Drawing upon social and emotional resource theories, this study employs a quantitative approach and uses a structured questionnaire survey administered among frontline employees in hotels in Egypt. Based on the valid responses of 792 participants, the study employed the PLS-SEM data analysis method using Smart PLS 4.0. The findings reveal that emotional contagion significantly directly impacts workplace outcomes and through psychological well-being. Furthermore, high-quality LMX and greater psychological resilience buffer the negative effects of emotional contagion, underscoring their critical roles in the workplace. The study contributes to the organizational behavior literature by highlighting the interplay between emotional and psychological factors in shaping employee performance and satisfaction.