Orientation: Employees need mental toughness to perform in crisis and increasingly competitive environments. Mental toughness is a psychological construct that arguably motivates individual to perform well and confidently.Research purpose: This study aims to investigate the impacts of self-esteem and perceived inclusion on mental toughness, the impact of mental toughness on competitive performance and the role of coaching in moderating the impacts of self-esteem and perceived inclusion on mental toughness.Motivation for the study: Mental toughness from the human resource management (HRM) perspective remains understudied. This study is expected to contribute to the literature on individuals’ positive behaviours in organisations.Research approach/design and method: This study is an explanatory research with 174 supervisors of Indonesian hotels as the respondents selected using a judgemental sampling technique. The data are analysed using partial least squares structural equation modelling with the SmartPLS 3.0 programme.Main findings: The findings show significant effects of self-esteem and perceived inclusion on mental toughness. Further, mental toughness affects supervisors’ competitive performance. This study also finds that coaching moderates the association between perceived inclusion and mental toughness. However, coaching cannot moderate the effect of self-esteem on mental toughness.Practical/managerial implications: Organisations can develop their employees’ mental toughness by bolstering their self-esteem, promoting an organisational culture that embraces inclusion and implementing regular and continuous coaching for employees.Contribution/value-add: This study analyses mental toughness from the HRM perspective. Accordingly, the implementation of the findings in organisations arguably contributes to individuals’ workplace positive behaviours.