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Purpose Drawing on social exchange theory, this study examines the influence of co-worker exchange (CWX) on service recovery performance and creative performance among frontline employees (FLEs) in the hotel industry. The research conceptualizes social loafing as a mediating mechanism and positions interactional justice as a moderator in these relationships. Design/methodology/approach Data were collected from FLEs employed in three- and four-star hotels. A range of statistical analyses were performed including mediation and moderation analyses. The construct validity and reliability of the measurement were assessed prior to hypotheses testing. Findings The results support the hypothesized relationships, demonstrating that high-quality CWX is significantly related to enhanced service recovery performance and greater creativity. Furthermore, CWX is linked to a reduction in both the extent and impact of social loafing in the workplace. Interactional justice emerged as a critical boundary condition, significantly moderating the negative effect of antisocial behavior on performance outcomes. Overall, these results underscore the important interplay between social exchange mechanisms and organizational justice in fostering positive employee behaviors while mitigating workplace deviance. Practical implications The study reveals actionable strategies for hotel managers to enhance team collaboration, reduce social loafing, and improve employee creativity and service recovery. Key recommendations include fostering positive relationships with co-workers, promoting fairness through interactional justice, implementing team-based incentives, and cultivating a learning-oriented culture. Originality/value This study addressed the underexplored issues of social loafing and antisocial behavior in the hospitality industry. It offers a fresh perspective on how fairness in workplace interactions can mitigate the adverse effects of detrimental behaviors, thereby enriching theoretical understanding and informing practical interventions.