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Leading Virtual Teams: Hierarchical Leadership, Structural Supports, and
Shared Team Leadership
Julia E. Hoch and Steve W. J. Kozlowski
Michigan State University
Using a field sample of 101 virtual teams, this research empirically evaluates the impact of traditional
hierarchical leadership, structural supports, and shared team leadership on team performance. Building
on Bell and Kozlowski’s (2002) work, we expected structural supports and shared team leadership to be
more, and hierarchical leadership to be less, strongly related to team performance when teams were more
virtual in nature. As predicted, results from moderation analyses indicated that the extent to which teams
were more virtual attenuated relations between hierarchical leadership and team performance but
strengthened relations for structural supports and team performance. However, shared team leadership
was significantly related to team performance regardless of the degree of virtuality. Results are discussed
in terms of needed research extensions for understanding leadership processes in virtual teams and
practical implications for leading virtual teams.
Keywords: team virtuality, virtual team leadership, structural supports, shared team leadership, team
performance
Virtual teams work together over time and distance via elec-
tronic media to combine effort and achieve common goals (Bell &
Kozlowski, 2002). Although surveys indicate that fewer than 50%
of companies used virtual teams in 2000, by 2008 over 65% stated
that their reliance on virtual teams would “mushroom” in the
future. Moreover, among companies with over 10,000 employees,
the use of virtual teams was projected to be 80% (i4cp, 2006,
2008). Concurrent with this growth in the use of virtual teams, the
literature on virtual teams has been increasing (Cheshin, Rafaeli, &
Bos, 2011;Hill, Bartol, Tesluk, & Langa, 2009;Majchrzak, Mal-
hotra, Stamps, & Lipnack, 2004;Martins & Shalley, 2011;
Mesmer-Magnus, DeChurch, Jimenez-Rodriguez, Wildman, &
Shuffler, 2011;Peters & Karren, 2009;Sarker, Anjuja, Sarker, &
Kirkeby, 2011;Shin, 2004).
Most research has focused on the advantages and disadvan-
tages of virtual teams. Relative to face-to-face teams, benefits
attributed to the use of virtual teams include the ability to
compose a team of experts flung across space and time, in-
creases in staffing flexibility to meet market demands, and cost
savings from reduced travel (Kirkman, Gibson, & Kim, 2012;
Kirkman & Malthieu, 2005;Stanko & Gibson, 2009). Disad-
vantages include lower levels of team cohesion, work satisfac-
tion, trust, cooperative behavior, social control, and commit-
ment to team goals; all factors that can negatively impact team
performance.
In light of these concerns, it is surprising that relatively
limited research attention has been directed toward virtual team
leadership (Gibson & Gibbs, 2006;Kirkman et al., 2012;Mar-
tins, Gilson, & Maynard, 2004;O’Leary & Mortensen, 2010;
Siebdraht, Hoegl, & Ernst, 2009). Team leadership is regarded
as a key mechanism for minimizing motivation and coordina-
tion losses and maintaining team effectiveness when they are
virtual (Bell & Kozlowski, 2002;Malhotra, Majchrzak, &
Rosen, 2007;Martins et al., 2004;Zigurs, 2003). However, one
particular concern is that traditional hierarchical leadership
processes are expected to be disadvantaged in virtual teams
because of the lack of face-to-face contact. Thus, some scholars
have suggested that hierarchical leadership processes may need
to be supplemented in virtual teams as a way to augment team
effectiveness (Avolio, Kahai, & Dodge, 2000;Bell & Kozlow-
ski, 2002). The purpose of this research is to investigate the
impact of team leadership on team performance in teams that
span degrees of virtuality. Although this perspective has been
proposed in the theoretical literature, it has not been examined
empirically. In particular, we examine the extent to which
structural supports and shared team leadership supplement hi-
erarchical leadership and the extent to which these relationships
are moderated by the degree of virtuality.
Editor’s Note. Eduardo Salas served as the action editor for this article.—
S.W.J.K.
This article was published Online First December 3, 2012.
Julia E. Hoch, School of Human Resources and Labor Relations, Mich-
igan State University; Steve W. J. Kozlowski, Department of Psychology,
Michigan State University.
The first author would like to acknowledge the German Research Foun-
dation (Grant No. 1412/6-1, U. Konradt, PI) for funding that, in part,
provided support during her doctoral dissertation research and Dr. Konradt
for serving as Chair of her doctoral thesis committee. Nonetheless, any
opinions, findings, and conclusions or recommendations expressed are
those of the authors and do not necessarily reflect the views of the DFG.
Correspondence concerning this article should be addressed to Julia E.
Hoch, who is now at California State University, Northridge, College of
Business and Economics, Department of Management, Juniper Hall
JH4216, 18111 Nordhoff Street, Northridge, CA 91330, or to Steve W. J.
Kozlowski, Michigan State University, Department of Psychology, 309
Psychology Building, East Lansing, MI 48824. E-mail: julia.hoch@csun
.edu or je.hoch1@gmail.com or stevekoz@msu.edu
This document is copyrighted by the American Psychological Association or one of its allied publishers.
This article is intended solely for the personal use of the individual user and is not to be disseminated broadly.
Journal of Applied Psychology © 2012 American Psychological Association
2014, Vol. 99, No. 3, 390– 403 0021-9010/14/$12.00 http://dx.doi.org/10.1037/a0030264
390
Theoretical Development
Leadership in Virtual Teams
There is consensus among scholars that virtual teams are more
difficult to lead than face-to-face teams (Bell & Kozlowski, 2002;
Duarte & Snyder, 2001;Gibson & Cohen, 2003;Hinds & Kiesler,
2002;Lipnack & Stamps, 2000). As a consequence of the lack of
face-to-face contact and geographical dispersion, as well as the
(often) asynchronous nature of communication, it is more difficult
for team leaders to perform traditional hierarchical leadership
behaviors such as motivating members and managing team dy-
namics (Avolio et al., 2000;Bell & Kozlowski, 2002;Purvanova
& Bono, 2009). It has been argued that leader influence can be
extended by having leadership augmented by new media (Avolio
& Kahai, 2003;Avolio et al., 2000) and that team leaders simply
have to learn how to use and apply those media properly. Findings
from empirical research show that getting virtual teams to function
equivalently to face-to-face teams requires virtual team leaders to
invest much more time and effort (Purvanova & Bono, 2009),
although showing more initiative, trying harder, and investing
more time and energy might not always be feasible.
Some scholars suggest that leadership functions should be sup-
plemented by providing structural supports (Bell & Kozlowki,
2002;Hinds & Kiesler, 2002;Kahai, Sosik, & Avolio, 2003). For
example, structuring rewards to provide incentives for perfor-
mance should result in higher motivation. Another suggested ap-
proach is to supplement leadership by distributing leadership to
team members (Bell & Kozlowski, 2002). Sharing leadership with
team members is based on the premise that leadership should not
be the sole responsibility of a hierarchical leader, but should be
collectively exercised by empowering and developing individual
team members (Kirkman, Rosen, Tesluk, & Gibson, 2004).
Although this view of leadership challenges in virtual teams has
consensus in the literature, it has not been subjected to empirical
verification. With respect to improving team performance, it is
important to understand the extent to which the influence of
hierarchical leadership is attenuated (or not) as team virtuality
increases. Moreover, if the influence of hierarchical leadership is
diminished as is suspected, then the extent to which it can be
supplemented by structural supports and shared team leadership
(and, potentially, other supplements) becomes a critical target for
theory and research extensions.
To examine these issues, our conceptual model treats hierarchi-
cal leadership, structural supports, and shared team leadership as
inputs to team performance. The model is illustrated in Figure 1.
The basic premise of our approach is that supplementing hierar-
chical leadership with shared leadership and structural supports
will be more relevant when teams are more virtual in nature. Thus,
the degree of team virtuality is predicted to moderate the relation-
ships between hierarchical leadership, structural supports, and
shared team leadership with team performance.
There are two notable aspects of the model. First, it is focused on
the contribution of these input factors to team performance. The
model does not focus on mediating processes at this stage of the
research. The primary reason for this focused approach is to enable a
clear evaluation of the moderating effects of virtuality on the contri-
butions of hierarchical leadership, structural supports, and shared
leadership to team performance. Second, the inputs are conceptual-
ized as distinct higher-order factors or construct composites, rather
than unitary constructs. This allows each of the inputs to be concep-
tualized as a composite of established constructs. For example, hier-
archical leadership is represented by transformational leadership,
leader–member exchange, and supervisory mentoring. Each of these
constructs, as core aspects of hierarchical leadership, is supported by
a body of theory and empirical research with established measures.
Using established constructs and measures of hierarchical leadership
as input factors allows us to clearly assess the potential supplementary
influence provided by structural supports and shared leadership. The
same conceptual and measurement approach using established con-
structs and measures is applied to structural supports and shared
leadership.
Team Virtuality
With the growth and evolution of virtual teams during the past
decade, researchers have focused on the conceptualization and
measurement of team virtuality (e.g., Bell & Kozlowski, 2002;
Hinds, Liu, & Lyon, 2011;Kirkman & Malthieu, 2005). In early
research, virtuality was treated as distinctly categorical; research-
ers applied a simple dichotomous characterization of virtual and
face-to-face teams. More recently, however, scholars have asserted
that this simple characterization glosses over a variety of nuanced
dimensions that underlie a range of differences in the degree of
virtuality (Gibson & Gibbs, 2006;Irwin & McClelland, 2003;
Kirkman et al., 2012;MacCallum, Zhang, Preacher, & Rucker,
2002;Mesmer-Magnus et al., 2011). Whereas early conceptual-
izations focused exclusively on geographic distribution, subse-
quent conceptualizations added electronic communication and
noted differences between the use of asynchronous and synchro-
nous communications (e.g., Bell & Kozlowski, 2002). Empirical
research, accordingly, refers to both the facets of geographic distri-
bution (e.g., O’Leary & Cummings, 2007;O’Leary & Mortensen,
2010) as well as the relative amount of e-communication media usage
(Griffith, Sawyer, & Neale, 2003;Kirkman et al., 2004;Mesmer-
Magnus et al., 2011) as indicative of “team virtuality.” This is now
the established approach to conceptualizing virtuality.
Structural Supports
Hierarchical Leadership
Shared Team Leadership
•Reward Systems
•Communication and
Information
•Transformational Leadership
•Leader-Member Exchange
•Career Mentoring
•Cognitive Team Learning
•Affective Team Support
•Behavioral Member-
Member Exchange
Team Performance
Team
Virtuality
•Geographic
Distribution
•Electronic Communication
•Cultural
Background
Figure 1. Effects of structural supports, hierarchical leadership, and
shared team leadership in predicting team performance, moderated by team
virtuality.
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391
LEADING VIRTUAL TEAMS
However, virtual teams increasingly span national boundaries
and differences in cultural background are becoming more impor-
tant to consider as an aspect of virtuality (Hinds et al., 2011;
Staples & Zhao, 2006;Tsui, Nifadkar, & Ou, 2007). Indeed, Hinds
et al. (2011) criticized the lack of inclusion of national and cultural
differences in conceptualizations of virtuality. As “organizations
are increasingly compelled to establish a presence in multiple
countries as a means of reducing labor costs, capturing specialized
expertise, and understanding emerging markets...they often
create conditions in which workers must collaborate across na-
tional boundaries” (Hinds et al., 2011, p. 136). Accordingly, re-
searchers need to put the global back into “global work” by
considering cultural differences.
Research is increasingly considering cultural differences as an
important component of virtuality in globally dispersed teams (e.g.,
Chen, Kirkman, Kim, Farh, & Tangirala, 2010;Gibson & Gibbs,
2006;Tsui et al., 2007). Based on this evolving view of virtuality, our
conceptualization comprises geographic distribution (e.g., O’Leary &
Cummings, 2007), relative amount of e-communication media usage
(e.g., Kirkman et al., 2004), and cultural diversity (e.g., Gibson &
Gibbs, 2006;Hinds et al., 2011;Tsui et al., 2007) as an addition to the
established components of team virtuality.
The Role of Hierarchical Leadership in Virtual Teams
Hierarchical leadership reflects formally designated leadership
(Ensley, Hmieleski, & Pearce, 2006;Morgeson, DeRue, & Karam,
2010;Yukl, 2010). Two well-established leadership theories rel-
evant to hierarchical leadership that have been widely supported in
the empirical literature are transformational leadership and leader–
member exchange (LMX). Both transformational leadership
(Fuller, Patterson, Hester, & Stringer, 1996;Judge & Piccolo,
2004;Lowe, Kroeck, & Sivasubramaniam, 1996) and LMX (e.g.,
Gerstner & Day, 1997;Graen & Uhl-Bien, 1995) are strong
predictors of individual and team performance. Moreover, trans-
formational leadership and LMX are the most prevalent ap-
proaches used in research on virtual teams (e.g., Avolio et al.,
2000;Hambley, O’Neill, & Kline, 2007;J. M. Howell & Hall-
Merenda, 1999;J. M. Howell, Neufeld, & Avolio, 2005).
Although it has received less attention, we posit that supervisory
career mentoring (e.g., Kram, 1985) is an important leadership
technique in virtual teams. Supervisory career mentoring is related
to career outcomes such as salary level, promotion rate, and job
satisfaction, as well as to objective and subjective performance
(Allen, Eby, Poteet, Lentz, & Lima, 2004;Chao, Walz, & Gardner,
1992;Scandura & Ragins, 1993;Whitely, Dougherty, & Dreher,
1991). Transformational leadership, LMX, and supervisory career
mentoring are the three primary constructs that comprise hierar-
chical leadership in the model.
First, transformational leadership (e.g., Bass, 1985,1998) has
been found to enhance performance in a wide range of organiza-
tional settings (Fuller et al., 1996;Judge & Piccolo, 2004;Lowe et
al., 1996). Transformational leader behaviors are aimed at inspir-
ing follower motivation and stimulating them to stretch their
capabilities and to go beyond typical performance (Judge & Pic-
colo, 2004). However, these forms of leader behavior have also
been posited to have weaker relations for virtual teams (Hambley
et al., 2007;J. M. Howell & Hall-Merenda, 1999;J. M. Howell et
al., 2005). Interpretations of leader behavior as transformational
are likely facilitated by cues that are more difficult to transmit,
detect, and interpret in a virtual work context.
Second, LMX also contributes to positive organizational out-
comes (Gerstner & Day, 1997;Graen & Uhl-Bien, 1995). LMX is
concerned with the nature and the quality of the dyadic relation-
ship between the team leader and each member. It describes the
nature of the leader–member relationship and, as such, is primarily
developed through face-to-face contact (Gerstner & Day, 1997),
although it can be maintained via forms of electronic communi-
cation such as e-mail and video-conferencing. LMX provides an
alternative mechanism for leader influence (J. M. Howell & Hall-
Merenda, 1999) since interpersonal relationships, once developed,
might be less adversely affected by the lack of ongoing face-to-
face contact in virtual teams, but may also be difficult to develop
where the leader has little to no face-to-face contact with team
members.
Third, Hamilton and Scandura (2003) highlighted e-mentoring
as an important leadership function for managing virtual teams,
since it is not restricted to face-to-face contact. Moreover, due to
virtual interaction, demographic “cues” (e.g., age or gender) are
less salient and less likely to influence protégé selection. Accord-
ingly, decisions about who to mentor will be more likely based on
performance criteria. Mentoring further aids in the development of
strong personal relationships that help strengthen leader influence
on the team member (Ostroff & Kozlowski, 1993). By increasing
interaction among leaders and members, it can counteract the
negative effects of limited face-to-face contact in virtual teams
(Hamilton & Scandura, 2003).
Hypothesis 1: The positive relationship between hierarchical
leadership (transformational leadership, LMX, and mentoring)
and team performance decreases as team virtuality increases.
The Role of Structural Supports in Virtual Teams
Given that hierarchical leadership is assumed to be more diffi-
cult in virtual teams, it is then important to understand how
hierarchical leadership can be supplemented when teams are more
virtual in nature. Structural supports represent a form of indirect
influence, where influence on the motivation and behavior of team
members takes place via structural attributes (Bell & Kozlowski,
2002;Wunderer, 2002). Structural supports draw from the leader-
ship substitutes approach (Kerr, 1977;Kerr & Jermier, 1978),
which asserts that aspects of the organization and task structure
can compensate, enhance, or neutralize the effects of leadership on
employee behavior. While originally proposed as a moderating
variable (J. P. Howell & Dorfman, 1981,1986), empirical and
meta-analytic studies have found strong support for main relation-
ships of structural and compensating variables with team outcomes
(Podsakoff, MacKenzie, & Bommer, 1996). Structural factors
have been suggested by Bell and Kozlowski (2002) as a supple-
ment for virtual team leadership, which is consistent with structural
functions listed by other scholars who refer to managing information,
resources, and material rewards (e.g., Fleishman et al., 1991).
In virtual teams, the stability and reduction of ambiguity pro-
vided by structural supports may compensate for the turbulence
and unpredictability that characterizes virtual teamwork (Zaccaro
& Bader, 2003;Zigurs, 2003). Bell and Kozlowski (2002) argued
that because of the geographic dispersion of virtual teams, an
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392 HOCH AND KOZLOWSKI
important function of leadership is to create structures and routines
that substitute for direct leadership influence and regulate team
behavior. Consistent with research that suggests structural supports
have direct relationships with outcomes that supplement hierarchi-
cal leadership (Podsakoff et al., 1996), our model conceptualizes
them as having a direct relationship rather than a moderating one.
Virtual team members usually work on virtual teams in addition
to their line function and research has highlighted the importance
of rewarding virtual team members for both aspects. Geographical
dispersion can result in a lack of motivation to focus on virtual
team responsibilities, makes monitoring of virtual team members
difficult, and also creates higher levels of anonymity (Kiesler &
Cummings, 2002;Wiesenfeld, Raghuram, & Garud, 1999). Fur-
ther, reward systems need to be fair, such that individual employ-
ees perceive they are being rewarded according to their inputs
(e.g., effort, time, performance, etc.) on their virtual team work
(Colquitt, 2004;Dulebohn & Martocchio, 1998;Schminke, Cro-
panzano, & Rupp, 2002). Being rewarded in a fair and transparent
way for the work performed on the virtual team will lead employ-
ees to put more efforts toward virtual teamwork.
Second, a major component of structural supports is the com-
munication and information management systems used for virtual
teams. Building and managing communication and information
management systems that facilitate connectivity, remove percep-
tions of distance, and facilitate the organization and accessibility of
information can reduce feelings of lack of trust, anonymity, de-
individuation, and perceptions of low social control. In addition,
virtual teamwork is typically white-collar, knowledge based, in-
tellectual, and interdependent. The management of communication
and information is central to cognitive tasks (Clampitt & Downs,
2004;Faraj & Sproull, 2000). Thus, a key aspect of performance
in virtual teams is managing the “triangle” of factors: shared
knowledge (in changing and flexible organization structure), via
electronic communication systems, and with experts as primary
collaborators (Griffith et al., 2003;Kanawattanachai & Yoo, 2007;
Malhotra & Majchrzak, 2004). As a form of structural support,
managing communication and information flow (Fleishman et al.,
1991) include information infrastructure and quality of informa-
tion received, as well as the transparency and adequacy of
communication and information management. Communication
and information management are posited to influence virtual
team performance. We expect that team virtuality moderates the
relationship between structural supports and team performance.
Specifically,
Hypothesis 2: The positive relationship between structural
supports (reward systems; communication and information)
and team performance increases as team virtuality increases.
The Role of Shared Team Leadership in Virtual
Teams
Shared team leadership describes a mutual influence process,
characterized by collaborative decision-making and shared respon-
sibility, whereby team members lead each other toward the
achievement of goals (Day, Gronn, & Salas, 2004;Pearce &
Conger, 2003). Shared team leadership is presumed to create
stronger bonds among the team members; facilitate trust, cohesion,
and commitment; and mitigate disadvantages of virtual teams
(Pearce & Conger, 2003). Thus, sharing leadership functions with
team members provides a mechanism to supplement hierarchical
leadership in virtual teams (Bell & Kozlowski, 2002;Pearce, Yoo,
& Alavi, 2004;Tyran, Tyran, & Shepherd, 2003).
Scholars have argued that shared leadership is a more appropri-
ate form of team leadership than hierarchical leadership repre-
sented by the solo leader (Brown & Gioia, 2002;Day et al., 2004;
Yukl, 2010). Reasons for this include the notion that team member
communication is less formal and less hierarchically based, and,
therefore, team members can more easily overcome communica-
tion difficulties (Bell & Kozlowki, 2002;Pearce et al., 2004). In
addition, work processes in virtual teams are characterized as
cognitively loaded, highly interdependent, yet autonomous. Com-
plex teamwork requires the use of self-managing teams (Bell &
Kozlowski, 2002;Pearce, 2004;Pearce & Manz, 2005). Team
self-management and empowerment, in this context, has been
shown to enhance virtual team performance in a sample 35 sales
and service virtual teams in a high-technology organization (Kirk-
man et al., 2004).
There is no “one best way” to measure shared leadership. The
concept is in its infancy (Avolio, Jung, Murry, & Sivasbramaniam,
1996;Carson, Tesluk, & Marrone, 2007;Mayo, Meindl, & Pastor,
2003;Mehra, Smith, Dixon, & Robertson, 2006;Pearce & Conger,
2003), and, thus, a challenge facing researchers is determining how
to measure shared team leadership. One primary approach has
simply treated shared team leadership as analogous to hierarchical
leadership, but conceptualized at the team level of analysis (e.g.,
Avolio et al., 1996;Bowers & Seashore, 1966;Pearce & Sims,
2002). This approach assesses shared leadership as collective
concept in the form of traditional leadership behaviors (e.g., trans-
formational leadership) that are performed by team members.
Typically, a traditional leadership measure—like transformational
leadership—is referenced to the team as a collective (reference
shift model; Chan, 1998; e.g., “Our team engages in behaviors that
help create a team vision”) to comprise shared team leadership.
However, consistent with other researchers (Carson et al., 2007;
Mayo et al., 2003;Mehra et al., 2006), we do not conceptualize
shared team leadership as parallel with hierarchical leadership.
Team members do not need to necessarily perform the same kind
of leadership behaviors as their supervisors (Künzle et al., 2010;
Morgeson et al., 2010) in order to engage in shared leadership.
Rather, shared leadership can be conceptualized as the extent to
which team members behave in ways to prompt the team processes
that underlie team performance. Team process researchers have
distinguished cognitive, affective-motivational, and behavioral
functions as keys to team effectiveness (Kozlowski & Bell, 2003;
Kozlowski & Ilgen, 2006). Team leader effectiveness, as outlined
in functional leadership (McGrath, 1962), is based on leaders
addressing the cognitive, affective, and behavioral functioning of
their teams (Zaccaro, Rittman, & Marks, 2001). These leadership
functions can be performed through informal leadership mecha-
nisms (Morgeson et al., 2010) such as shared team leadership.
In capturing shared leadership in virtual teams, affective-
motivational functions can be represented in terms of perceived
team support, which is related to building trust and team cohesion
(Kasper-Fuehrer & Ashkanasy, 2001) and may compensate for
specific gaps resulting from the lack of face-to-face meetings in
virtual teams, that is, lack of trust, and higher levels of anonymity
(Jarvenpaa, 2004;Jarvenpaa & Leidner, 1999). Cognitive func-
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393
LEADING VIRTUAL TEAMS
tioning can be represented in terms of team learning (Edmondson,
1999;Edmondson, Bohmer, & Pisano, 2001), which is highly
relevant due to the cognitively loaded nature of work in virtual
teams. For behavioral processes, member–member exchange qual-
ity (Sherony & Green, 2002), which reflects the application of
traditional leader–member exchange (Gerstner & Day, 1997;
Graen, 1976;Graen & Uhl-Bien, 1995;Seers, 1989) to lateral
coworker exchange (i.e., among peers), is expected to be important
(Baltes, Dickson, Sherman, Bauer, & LaGanke, 2002;Hollings-
head & McGrath, 1995). We expect that shared team leadership
will provide a means to compensate for the gaps and disadvantages
in virtual teams such that it will be more strongly related to team
performance with increasing levels of virtuality. Specifically,
Hypothesis 3: The positive relationship between shared team
leadership (cognitive, affective, and behavioral leadership)
and team performance increases as team virtuality increases.
Method
Sample
Study participants were comprised of 565 team members and
team leaders on 101 research and development (R & D) teams
from global manufacturing industries. Human resource leaders in
several companies were contacted. A number agreed on company
participation in the study and facilitated data collection in ex-
change for technical report feedback and personal debriefing on
the teams. The teams were similar in that all participants worked
onR&Dprojects that involved knowledge-based, interdependent
group tasks. All teams worked under some degree of virtuality.
That is, they worked across geographic distance, across different
time zones, with employees from different cultural backgrounds,
and primarily used electronic communication media for their work.
However, the degree of virtuality among the teams varied. While
some of them worked primarily face-to-face and to a limited
degree virtually, others ranged widely in the degree to which they
operated virtually. All of the teams primarily used electronic
communication media for their work, although some teams were
distributed across up to seven sites per team, whereas others pri-
marily worked at one site. Team members on virtual teams worked on
average 359.20 miles away from each other, and 12% of the virtual
team members worked alone at one site.
Teams consisted of an average of five members (SD ⫽2.94,
range ⫽3–13). The average tenure of team members was 4.18
years (SD ⫽4.96), and the average tenure of the leaders was
4.23 years (SD ⫽4.97). The average age of the team members was
37 years (SD ⫽6.17, range ⫽19–61 years). Team members
averaged working on five projects at the same time (M⫽4.86,
SD ⫽18.51). Since they were developing products together, their
work was interdependent. Therefore, task interdependence was
measured as a control. Teams consisted of 77.1% male employees.
Average team leader age was 41 years (SD ⫽8.42, range ⫽25–61
years), and 89.1% of the team leaders were male.
Measures
Scales. All constructs in the model center on the team as the
focal unit of theory. Accordingly, all measures were specified at
the team level (i.e., team referents using a reference shift model of
composition; Chan, 1998). Furthermore, all items were framed with
respect to virtual team performance. The introduction of every page of
the questionnaire stated: “Please respond to all items with regard to
your work on your virtual team and not your regular line function,” or
“please respond to all of the following items with respect to your work
on your virtual team.” Team members rated leadership and team
composition. Team leaders rated the team’s performance. All of those
items were measured using a 5-point Likert scale ranging from 1
(strongly disagree)to5(strongly agree).
Hierarchical leadership was assessed using three indicators
rated by team members. Transformational leadership was mea-
sured with the Multifactor Leadership Questionnaire (MLQ) 5X
(Avolio & Bass, 2004). Twenty items were used to measure
transformational leadership with its five subscales of attributed and
behavioral idealized influence, intellectual stimulation, inspira-
tional communication, and individual consideration. A sample
item for inspirational communication was “My team leader talks
optimistically about the future.” Cronbach’s ␣was .92. Leader–
member exchange (LMX) was measured using a scale developed
by Graen, Novak, and Sommerkamp (1982; Wayne, Shore, &
Liden, 1997). A sample item was “My supervisor understands my
problems and needs.” Cronbach’s ␣was .89. Supervisor career
mentoring was measured by a validated scale (Blickle & Bou-
jataoui, 2005;Noe, 1988) based on the career support scale by
Riley and Wrench (1985) that assessed three dimensions: career
support, socio-emotional support, and role model. A sample item
is “My supervisor assigns tasks to me that foster the direct contact
with important supervisors.” Cronbach’s ␣was .89.
Structural supports were measured by (1) reward management and
(2) information and communication management, with one or two
subscales each. Reward management was measured using a scale to
assess the quality of reward systems and a scale for fairness of reward
systems. First, organizational reward management was measured
using five items from Podsakoff and MacKenzie (1994). A sample
item was “My performance appraisal system is very motivating.”
Cronbach’s ␣was .86. Second, a nine-item scale was used to
measure the fairness, transparency, and accountability of reward
systems based on Schminke et al. (2002). Specifically, items mea-
sured the three dimensions of performance evaluation, pay, and pro-
motion systems with regard to the extent they were perceived as (a)
fair, (b) accurate, and (c) transparent. Two sample items were “My
performance appraisal systems is fair,” “. . . transparent,” and so forth.
Cronbach’s ␣was .87.
Information and communication management comprised five
items adapted from Clampitt and Downs (2004) assessing the
Information Quality,orQuality of Information Received. A sample
item was “Information that I receive is often unclear and not
precise” (R). Cronbach’s ␣of this scale was .79. It also assessed
the extent to which Information Coordination Quality with a scale
adapted from Faraj and Sproull (2000). A sample item was: “There
is seldom confusion about how to accomplish our task.” Cron-
bach’s ␣was .87.
Shared leadership was measured in terms of cognitive, affec-
tive, and behavioral dimensions (Kozlowski & Bell, 2003;Koz-
lowski & Ilgen, 2006;Zaccaro et al., 2001). Specifically, cognitive
processes were measured with four items on team learning to
assess the extent to which team members are active in obtaining
feedback to improve their own performance. Here, a sample item
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394 HOCH AND KOZLOWSKI
is “Our team actively searches our own performance for deficits.”
Cronbach’s ␣was .92. Next, affective correlates were measured
with five items on perceived team support (PTS), which had been
developed on the basis of the perceived organizational support
construct by Eisenberger, Huntington, Hutchison, and Sowa
(1986) and previously used by Wayne et al. (1997;Bishop, Scott,
& Burroughs, 2000). PTS measures the extent to which team
members support each other. A sample item is “My team really
cares about my well-being.” Cronbach’s ␣was .87. Finally, be-
havioral shared team leadership, in terms of member–member
exchange (MMX) was measured with items that applied the leader–
member exchange construct to the team consistent with Sherony
and Green (2002). Specifically, following a referent shift approach
(Chan, 1998), to measure MMX we referenced LMX-7 items (e.g.,
traditional measure of leader–member exchange; e.g., Gerstner &
Day, 1997;Graen & Uhl-Bien, 1995) to the team. A sample item
is “My team understands my problems and needs.” Cronbach’s ␣
was .87.
Team performance was rated by team leaders on a scale based
on Hoegl and colleagues (Gemuenden & Hoegl, 2001;Hoegl &
Gemuenden, 2001). The team leader rated the team’s performance
regarding the aspects of work quantity, quality, keeping within the
project schedule, and keeping within the budget using a scale
ranging from 0% to 100%. Cronbach’s ␣was .79.
Team virtuality. The degree of team virtuality was measured
in terms of three indicators: geographic dispersion, electronic
communication media usage, and cultural differences (Fiol &
O’Connor, 2005;Gibson & Cohen, 2003;Gibson & Gibbs, 2006;
Kirkman & Malthieu, 2005;Kirkman et al., 2004;Townsend,
DeMarie, & Hendrickson, 1998). Geographic dispersion was as-
sessed with a measure by O’Leary & Cummings (2007), which
included seven indicators, such as distance in miles, number of
sites per team, percentage of team members alone at one site, and
others. The relative amount (frequency) of electronic versus face-
to-face communication was measured with a scale based on Kac-
mar, Witt, Zivnuska, and Gully (2003) that included indicators of
e-mail, chat, video and telephone conferencing, text and instant
messaging, and face-to-face meetings that were rated with
respect to frequency of use for communicating with colleagues
and supervisors. Since we were interested in the relative fre-
quency of electronic communication media use relative to total
communication, we calculated a ratio of relative communica-
tion frequency by dividing the sum of the electronic communi-
cation media use by the sum of all communication (media and
face-to-face communication). To account for cultural differ-
ences, we averaged the number of different nationalities per
team. The number of nationalities per teams on average was
3.60 (SD ⫽8.02) nationalities per team.
The three scores of geographic distribution, electronic media
usage, and cultural differences (nationalities per team) were sub-
ject to a z-transformation and were summed to form the team
virtuality composite. Cronbach’s ␣was .77. The measure ranged
from –3.80 to 16.17, with M⫽–0.32, and SD ⫽3.57. Higher
scores indicate increased virtuality.
Analyses
Hypothesis testing was conducted in a three-step procedure.
First, we conducted confirmatory factor analyses (CFA; Arbuckle,
2003) on the individual level data to assess the fit of the measure-
ment model for the input factors and for the virtuality moderator
composite. We accounted for the two-level hierarchical structure
of the inputs, with the construct measures specified to load onto
their respective input variables. CFA also supported the two-level
hierarchical structure of the virtuality moderator (i.e., geographical
distance combined with e-communication, and culture sub-
factors). Second, the main analyses were performed on group level
data. Given the reduction in sample size, we used partial least
squares structural equation modeling (PLS), a regression-based
structural equation model (SEM) that is robust with regard to small
samples (Chin, 2001;Ringle, Wende, & Will, 2006), which has
been adopted by many team researchers (Jung & Sosik, 2002;
Sambamurthy & Chin, 1994;Sosik, Avolio, & Kahai, 1997). Tests
of significance in PLS were conducted using the bootstrap re-
sampling procedure (Efron & Tibshirani, 1993). Third, we tested
moderation effects by computing the interaction terms between
team virtuality and the input variables using centered data follow-
ing Aiken and West (1991).
Justification for aggregation. The theoretical focus of the
virtual team leadership model is specified at the team level. As-
sessments of the input variables were obtained from individual
team members using team referent items, which conforms to a
referent shift composition model (Chan, 1998) for data aggrega-
tion. Thus, we examined restricted within-group variance for all
variables prior to aggregation to the team level of analysis (Klein
et al., 2000;Kozlowski & Klein, 2000). We calculated ICC1,
which is an index of inter-rater reliability, and ICC2, which is an
index of the stability of the aggregated mean for each measure
(Bliese, 2000). On average, across measures, the ICC1 was .45,
and ICC2 was .69 (following r-to-zconversion). Specifically, the
ICC1 and ICC2, respectively, were as follows: organizational
reward management was .44 and .75, reward systems was .44 and
.77, the quality of the information received was .46 and .67, the
way the knowledge was coordinated was .46 and .76, transforma-
tional leadership was .43 and .81, LMX was .43 and .83, mentoring
was .35 and .82, team learning was .43 and .80, perceived team
support (PTS) was .44 and .83, and member–member exchange
(MMX) was .39 and .83. Overall, the ICC1 indices were substan-
tial (Bliese, 2000), providing evidence to support aggregation, and
the ICC2 values indicated stability for the aggregated mean
(Bliese, 2000).
Control variables. Since team age and gender composition
correlated with several of the study variables, analyses were per-
formed controlling for gender and age. We further controlled for
task interdependence (three items, based on Van Der Vegt, Emans,
& Van De Vliert, 2000; Cronbach’s ␣⫽.77) and the number of
projects an employee was working on (“How many projects are
you working on at the same time?”). We entered all five variables
as controls into the PLS model.
Results
Means, standard deviations, inter-correlations, and reliability
coefficients of study variables are presented in Table 1.
Pre-Analyses
A CFA for the measurement model structure of the inputs was
performed. In order to determine if all the scales loaded on a single
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395
LEADING VIRTUAL TEAMS
factor (representing a lack of distinction among the input factors),
we first tested a one-factor model. This did not fit the data well
(
2
/df ⫽2.68, comparative fit index [CFI]⫽.89). Next, we
computed a three-factor model, where hierarchical leadership,
structural supports, and shared team leadership were specified as
three separate constructs with all items loading on either hierar-
chical leadership, the structural supports, or the shared team lead-
ership construct. This three-factor model had a better fit (
2
/df ⫽
1.53, CFI ⫽.96) and was a significant improvement compared to
the one-factor model, ⌬
2
(2) ⫽2,180.92. Analyses were con-
ducted using modification indices calculations (Buehner, 2004).
We then examined a hierarchically structured three-factor model,
where each item loaded first on their respective facet (i.e.,
transformational, LMX, mentoring, reward systems, extrinsic
motivation, information quality, information coordination, process
improvement, MMX, PTS). These 10 facets each formed the
second-order, hierarchical constructs for hierarchical leadership,
structural supports, or shared team leadership. The second-order
constructs of hierarchical leadership, structural supports, and
shared team leadership were allowed to intercorrelate. This
second-order, hierarchical model provided a good fit to the data
(
2
/df ⫽1.18, CFI ⫽.99, root-mean-square error of approxima-
tion [RMSEA]⫽.02). Specifically, it demonstrated a better fit than
the previously tested three-factor, non-hierarchical model,
⌬
2
(10) ⫽1,300.94, p⬍.001, and therefore provided the best fit
for the theoretically expected factor structure. As a further indica-
tor for the quality of the measurement model, in PLS, the AVE-
score (Fornell & Larcker, 1981) was calculated. The AVE-score
assesses the percentage of variance among the indicators caused by
the latent variable in relation the measurement error. The AVE-
score should exceed .5. In the model we tested, the total AVE-score
was .85, which supports the quality of the measurement model.
The measurement model findings provide support for our approach
to use established constructs, validated measures, and composites
to represent the conceptual structure for the inputs.
We next used CFA to evaluate the structure of the virtuality
composite. Researchers have generally treated geographic distance
and the use of electronic communication media as key components of
virtuality (e.g., Gibson & Cohen, 2003;Griffith et al., 2003;Kirkman
et al., 2004;Mesmer-Magnus et al., 2011;O’Leary & Cummings,
2007;O’Leary & Mortensen, 2010). With the rise of globalization,
however, some theorists have made a conceptual case for incorporat-
ing cultural differences into the conceptualization of team virtuality
(Hinds et al., 2011;Kirkman & Malthieu, 2005;Staples & Zhao,
2006;Tsui et al., 2007). Our composite conceptualization is consistent
with this emerging perspective. Thus, we used CFA to evaluate the
efficacy of this approach. We compared five models composed of the
three virtuality components:
1. a one-factor structure (i.e., all items loading on one
factor);
2. our composite—a one-factor hierarchical model with two
sub-factors (i.e., electronic communication media com-
bined with geographic dispersion; and nationality);
3. two separate factors (i.e., electronic media communication
combined with geographic dispersion; and nationality);
Table 1
Means, Standard Deviations, and Pearson Correlation Coefficients
Variable MSD 1234 5 67891011121314151617
1. Age 37.22 6.16 —
2. Gender
a
1.33 0.35 .04 —
3. Team size 5.36 2.97 ⫺.10 ⫺.12 —
4. Nationalities/team 3.60 8.02 ⫺.26
ⴱⴱ
.03 .08 —
5. Geographic dispersion 0.14 3.70 ⫺.34
ⴱⴱ
⫺.14 .05 .38
ⴱⴱ
—
6. Relative e-communication (Inv.) 3.59 1.30 .12 .07 ⫺.02 ⫺.34
ⴱⴱ
⫺.33
ⴱⴱ
—
7. Reward systems 2.88 0.74 .02 .01 ⫺.10 ⫺.10 ⫺.05 .20
ⴱ
.87
8. Extrinsic motivation 2.71 0.96 .07 .15 .10 .05 ⫺.16 ⫺.01 .51
ⴱⴱ
.86
9. Information quality 2.42 0.58 .11 .01 ⫺.02 ⫺.21
ⴱ
⫺.11 .13 .35
ⴱⴱ
⫺.13 .79
10. Coordination 3.60 0.71 .22
ⴱ
⫺.08 ⫺.05 ⫺.31
ⴱⴱ
⫺.19 .06 .28
ⴱⴱ
.06 .49
ⴱⴱ
.87
11. Transformational 3.21 0.58 ⫺.13 ⫺.03 .10 ⫺.16 .08 .23
ⴱ
.24
ⴱ
.09 .21
ⴱ
.28
ⴱⴱ
.92
12. LMX 3.93 0.67 ⫺.02 ⫺.07 .13 ⫺.18 ⫺.01 .27
ⴱⴱ
.39
ⴱⴱ
.20
ⴱ
.32
ⴱⴱ
.41
ⴱⴱ
.72
ⴱⴱ
.89
13. Mentoring 2.79 0.67 ⫺.17 ⫺.10 .12 .02 .22
ⴱ
.16 .41
ⴱⴱ
.26
ⴱⴱ
.11 .17 .68
ⴱⴱ
.70
ⴱⴱ
.89
14. PTS 3.14 0.52 .05 .03 .09 ⫺.08 .08 ⫺.04 .01 .04 .03 .29
ⴱⴱ
.32
ⴱⴱ
.26
ⴱⴱ
.25
ⴱⴱ
.87
15. MMX 3.80 0.59 ⫺.07 ⫺.15 .10 ⫺.10 ⫺.06 .11 .22
ⴱ
.16 .24
ⴱ
.50
ⴱⴱ
.39
ⴱⴱ
.43
ⴱⴱ
.26
ⴱⴱ
.63
ⴱⴱ
.87
16. Process feedback 3.20 0.76 ⫺.06 ⫺.06 ⫺.02 ⫺.01 .11 ⫺.04 .23
ⴱ
.13 .11 .44
ⴱⴱ
.31
ⴱⴱ
.29
ⴱⴱ
.27
ⴱⴱ
.52
ⴱⴱ
.50
ⴱⴱ
.92
17. Team Performance
b
89.45 9.41 ⫺.05 .11 ⫺.18 ⫺.10 ⫺.09 ⫺.04 .09 .12 .19 .31
ⴱⴱ
⫺.12 .13 ⫺.09 .09 .18 .05 .79
Note. N ⫽101 teams. LMX ⫽leader–member exchange; PTS ⫽perceived team support; MMX ⫽member–member exchange.
a
Gender: 1 ⫽male; 2 ⫽female.
b
Leader-rated variable.
ⴱ
p⬍.05.
ⴱⴱ
p⬍.01.
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396 HOCH AND KOZLOWSKI
4. a one-factor hierarchical model with three sub-factors (i.e.,
electronic communication media, geographic dispersion,
and nationality) to represent separate contributions to a
higher-order factor; and
5. three separate factors (i.e., electronic communication media,
geographic dispersion, and nationality).
As shown in Table 2, results indicated that Model 2, the hier-
archical one-factor model with two sub-factors (which reflected
our composite conceptualization) provided the best fit to the data.
Model 1, the one-factor model with no sub-factors, did not fit the
data very well (
2
/df ⫽1.91, goodness-of-fit index [GFI]⫽.85,
CFI ⫽.93, RMSEA ⫽.10). Fit for Model 2 (
2
/df ⫽1.39, GFI ⫽
.89, CFI ⫽.97, RMSEA ⫽.06) was good. Fit for Model 2 was
significantly better than for Model 1, the one-factor model,
⌬
2
(3) ⫽48.27, p⬍.001, or for Model 3, the two-factor non-
hierarchical model, ⌬
2
(1) ⫽23.85, p⬍.001. Model 2 also fit the
data better than Model 5, the three-factor model, ⌬
2
(14) ⫽29.58,
p⬍.01, which showed poor fit overall (
2
/df ⫽1.85, GFI ⫽.84,
CFI ⫽.93, RMSEA ⫽.09). Thus, there was good empirical
support for our conceptualization and composite approach to cap-
turing team virtuality.
Main Analyses: Inner Model Analyses
Next, we examined direct relationships via the inner (structural
model analyses) from PLS with the three groups of predictor
variables predicting team effectiveness on the team level data. The
inner model analyses showed that both structural supports (b⫽
0.88, p⬍.01) and shared team leadership (b⫽1.80, p⬍.001)
predicted team performance, whereas hierarchical leadership did
not (b⫽0.85, ns). Those results are displayed in Table 3.
Moderation by Team Virtuality
Moderation analyses were conducted to determine whether the
degree of team virtuality had a differential influence on the rela-
tionship between the inputs and team performance as predicted by
the model. Centered data were used to compute the interaction
terms between team virtuality and the three groups of predictor
variables. When team virtuality was entered as a predictor, there
was a marginally negative relationship with team performance
(b⫽–0.40, p⬍.10), suggesting that with increasing levels of
team virtuality teams performed less well.
Next, hierarchical leadership interacted with team virtuality in
predicting team performance in a negative way (b⫽–1.74, p⬍
.01). With regard to structural supports, there was no longer a
significant main relationship with team performance (b⫽0.55, ns)
when team virtuality was added, but structural supports interacted
with virtuality in predicting team performance (b⫽2.77, p⬍
.001). Those results are displayed in Table 4.
As shown in Figures 2 and Figures 3, we graphed these rela-
tionships following Aiken and West (1991).Figure 1 shows that
under high levels of virtuality hierarchical leadership was not
related to team performance. Under low levels of virtuality, hier-
archical leadership was significantly related to team performance.
Figure 2 shows that structural supports were positively related to
team performance under high levels of virtuality, but not under low
virtuality. Hypotheses 1 and 2 were supported. Finally, for Hy-
pothesis 3, team virtuality did not interact with shared leadership
in predicting team performance (ns), whereas shared team leader-
ship was still positively related to team performance (b⫽1.94,
p⬍.001). Hypothesis 3 was not supported; results are displayed
in Table 4.
Discussion
Summary
This study examined the relationships between hierarchical
leadership, structural supports, and shared team leadership with
team performance, and the moderating effects of virtuality on these
relationships. Our research approach, which assessed each of the
inputs as construct composites, provided a measurement model
Table 3
Specifications of the Inner Model Path Coefficients of the
Distributed Leadership Model
Predictor variables
Team performance (supervisor rating)
bSDt
Hierarchical leadership 0.85 0.13 0.67
Structural supports 0.88
ⴱⴱ
0.04 2.24
Shared team leadership 1.80
ⴱⴱⴱ
0.04 2.23
Gender
a
0.96
ⴱⴱⴱ
0.03 3.89
Age ⫺1.33
ⴱ
0.04 3.39
No. of projects ⫺3.01
ⴱⴱⴱ
0.05 5.63
Task interdependence 0.96
ⴱ
0.03 2.12
R
2
.18
Note. N ⫽101 teams; Bootstrap 500: 2000.
a
Gender: 1 ⫽male; 2 ⫽female.
ⴱ
p⬍.05.
ⴱⴱ
p⬍.01.
ⴱⴱⴱ
p⬍.001.
Table 2
Model Comparisons for Measurement of Virtuality
Model
2
/df GFI CFI RMSEA
1. One-factor model (without sub-factors) 1.91 .85 .93 .10
2. One-factor model with two sub-factors (hierarchical two-factor model) 1.39 .89 .97 .06
3. Two-factor model (non-hierarchical) 1.66 .87 .95 .08
4. One-factor model with three sub-factors (hierarchical three-factor model) 1.85 .84 .93 .09
5. Three-factor model (non-hierarchical) 1.85 .84 .93 .09
Note. N ⫽101. GFI ⫽goodness-of-fit index; CFI ⫽comparative fit index; RMSEA ⫽root-mean-square error of approximation.
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397
LEADING VIRTUAL TEAMS
that exhibited a good fit to the data in our sample. With regard
direct relations, structural supports and shared leadership, but not
hierarchical leadership, were positively associated with team per-
formance. When testing for moderating effects, structural supports
were more, and hierarchical leadership was less, strongly associ-
ated with team performance, the higher the level of team virtuality.
The association between shared team leadership and team perfor-
mance was not affected by the degree of virtuality.
Theoretical Implications
The conceptualization and measurement of team virtuality.
First, central to virtual team leadership is the need to examine the
appropriate form of measurement to capture the multifaceted con-
cept of team virtuality. This is a primary contribution of our
research. The measure we developed incorporated the most recent
theorizing regarding the underpinnings of the virtuality construct;
it included geographic dispersion (O’Leary & Mortensen, 2010),
the relative amount of face-to-face and electronic communication
media usage (Griffith et al., 2003;Kirkman et al., 2004), and
cultural diversity (Hinds et al., 2011). With regard to cultural
diversity, our work reflects recent theorizing in the literature that
cultural differences add to virtuality (e.g., Chen et al., 2010;Hinds
et al., 2011;Tsui et al., 2007).
Leadership in virtual teams. The main goal of the present
research was to investigate hierarchical leadership in teams, the
inhibitory impact of virtuality on hierarchical leadership, and the
ability of structural supports and shared team leadership supple-
ment it. Our findings showed that the influence of hierarchical
leadership on team performance is weakened when teams are more
virtual in nature. Thus, when teams are virtual, it is desirable to
supplement the leader behaviors that are mitigated by distance,
electronic media, and cultural differences. Following Bell and
Kozlowski (2002), we examined the role of structural support
mechanisms and shared team leadership as alternative inputs to
team performance that could mitigate the loss of influence. Our
findings show that hierarchical leadership had weaker relations,
whereas structural supports were more strongly related, with
team performance under increasing levels of team virtuality.
Contrary to expectations, shared team leadership exhibited sta-
ble positive relations with team performance regardless of the
degree of virtuality.
Limitations and Research Extensions
Theorists have speculated that the processes of hierarchical
leadership are disadvantaged under conditions of virtuality, and
that supplements by structural supports and shared team leadership
can mitigate the loss of leadership influence (e.g., Bell & Kozlow-
ski, 2002). Our approach to examining this speculation was delib-
erately focused; we examined these factors as inputs to indepen-
dently rated team performance and treated them as construct
composites. Although this allowed a parsimonious examination of
the basic relationships of interest, it does not address the underly-
ing process mechanisms by which hierarchical leadership is inhib-
ited and structural supports provide supplements. Moreover, given
that shared team leadership exhibited a consistent relationship with
team performance regardless of the degree of virtuality, unpacking
the mechanisms by which it manifests this broad influence is
clearly in order.
There are some considerations that should be addressed in future
research to extend these findings. First, with moderation of the
low Structural
Supports
high Structural
Supports
Team Performance (In %)
low Virtuality
high Virtualit
y
Figure 3. Interaction between structural supports and team virtuality
predicting team performance.
Table 4
Moderation of Leadership Variables’ Effects by Team Virtuality
on Team Outcomes: Specification of Inner Model Path
Coefficients of the Distributed Leadership Model
Predictor
Team performance
(supervisor rating)
bSDt
Hierarchical leadership ⫺0.06 0.09 0.07
Hierarchical Leadership ⫻Team Virtuality ⫺1.74
ⴱⴱ
0.07 2.32
Structural supports 0.55 0.05 0.75
Structural Supports ⫻Team Virtuality 2.77
ⴱⴱⴱ
0.06 4.34
Shared team leadership 1.94
ⴱⴱⴱ
0.06 3.37
Shared Team Leadership ⫻Team Virtuality 0.70 0.09 0.78
Team virtuality ⫺0.40
†
0.07 0.89
Gender
a
1.16
ⴱⴱⴱ
0.03 3.21
Age ⫺1.59
ⴱⴱ
0.05 3.19
No. of projects ⫺3.01
ⴱⴱⴱ
0.06 5.45
Task interdependence 0.39 0.04 0.89
R
2
.27
Note. N ⫽101 teams; Bootstrap 500: 2,000 teams.
a
Gender: 1 ⫽male; 2 ⫽female.
†
p⬍.10.
ⴱⴱ
p⬍.01.
ⴱⴱⴱ
p⬍.001.
low Hierarchical
Leadership
high Hierarchical
Leadership
Team Performance (In %)
low Virtuality
high Virtualit
y
Figure 2. Interaction between hierarchical leadership and team virtuality
predicting team performance.
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398 HOCH AND KOZLOWSKI
input factors to performance relationship by virtuality established,
the next increment should turn attention to the mediating mecha-
nisms that link the input factors with team performance. This will
necessitate longitudinal research designs to appropriately capture
the processes and minimize concerns about causal ambiguity.
Second, although common source method variance is not an issue
with respect to the relationship between the input factors and
performance (which was rated independently), it will be desirable
to distinguish inputs from mediating processes in future research.
This may be accomplished by cross-splitting teams to examine
relations between inputs and processes (e.g., Hofmann & Stetzner,
1996), although such designs necessitate large teams. With basic
input-output-moderation relations established, mediating pro-
cesses are obvious next steps for extension.
In addition, there are also issues surrounding the composite
approach used to capture the degree of team virtuality—which has
both advantages and disadvantages—that merit discussion. With
respect to advantages, the composite—which combines the facets
of geographical separation, use of electronic media, and cultural
diversity—is consistent with the conceptual evolution of the con-
cept of virtuality that has occurred over the last decade. Estab-
lished conceptualizations of virtuality focus on geographical sep-
aration and the use of electronic media (Gibson & Cohen, 2003;
Griffith et al., 2003;Kirkman et al., 2004;Mesmer-Magnus et al.,
2011;O’Leary & Cummings, 2007;O’Leary & Mortensen, 2010).
However, organizations have become increasingly multi-national,
work teams are more frequently dispersed around the world, and
technological interconnectivity continues to advance. By treating
the facets as a composite, we captured a richer conceptualization of
virtuality in a parsimonious fashion that was also empirically
supported in our data.
This conceptualization and assessment, however, also intro-
duces ambiguity with respect to the definition of virtuality and to
the precise contribution of the distinct components. Each compo-
nent is a unique characteristic, and it could be argued that their
combination, while richer, is also less precise. Clearly, there is
value in identifying the unique influences of the specific compo-
nents of virtuality that we combined. Examining the effects of each
component as a distinct moderator, in combination with the other
components, however, will necessitate sampling that can achieve
wide variance on each component and substantial sample sizes to
allow robust evaluations. These sampling issues would be com-
pounded as additional components of virtuality are proposed. This
is desirable research extension, although we acknowledge that
such data will be challenging to acquire.
Finally, generalization of research findings is always limited by
the nature of the sample. Our teams were engaged in research and
development activities and drawn from a diverse set of firms in the
global automotive and automotive supplies industry. Clearly there
is a need to replicate the findings in teams that work in other
contexts, industries, and cultural settings.
Practical Implications and Future Research
There are three main practical implications. First, our data
suggest that the influence of hierarchical leadership is mitigated in
virtual teams, as it is less strongly related to team performance
when teams are more virtual in nature. This finding suggests that
providing virtual team leaders with appropriate support, orienta-
tion, and/or training could be potentially useful. They might also
need more time and resources for leading their virtual team com-
pared to leading their respective face-to-face team. Second, struc-
tural supports are more strongly related to team performance in
more virtual teams. Thus, structural supports have the potential to
be an effective management tool for augmenting hierarchical lead-
ership and can be recommended to aid leaders managing virtual
teams. Structural supports comprise fair and reliable reward sys-
tems, and transparent communication and information manage-
ment. Based on our findings, structural supports should be imple-
mented to augment hierarchical leaders in virtual teams. Third,
although expected, shared leadership contributed to team perfor-
mance regardless of the degree of virtuality. Therefore, shared
leadership can be recommended for the management of all teams
along the virtuality continuum.
Based on our findings, structural supports can be recommended
for managing virtual teams and shared leadership can be recom-
mended for managing teams in general. With regard to structural
supports, future research should determine the extent to which
leaders, or others in the organization, could influence perceptions
of structural supports among virtual team members. For example,
high structural supports might be less salient when there are
restrictions in technology or resources, when reward systems do
not reward team performance (or any performance!), or when there
are low levels of organizational support. Another direction for
future research is to more systematically investigate the boundary
conditions of structural supports, as well as moderating variables
that might influence the effectiveness of structural supports.
Shared team leadership enhanced team performance regardless
of virtuality. This was unexpected, as the literature has viewed this
supplement as more important under greater degrees of virtuality.
This study extends prior literature with regard to the conception of
shared leadership as a means to supplement team functions, as it
captures the extent to which team members can collectively en-
gage in cognitive, affective/motivational, and behavioral team
leadership behaviors (Kozlowski & Bell, 2003).
Because the influence of shared leadership on team performance
was not affected by degrees of virtuality, shared team leadership
appears to have the potential to be a potent leadership approach.
However, there is a lack of research focused on the antecedents of
shared team leadership (e.g., Carson et al., 2007;Hoch, in press).
This has implications for theoretical extension and practical appli-
cation: the question of how to facilitate the emergence of shared
leadership has not been addressed by prior research or this study
(e.g., Pearce & Conger, 2003). Future research needs to identify
antecedents, mediators, and moderators of shared team leadership,
such as the impact of self-leadership and self-management (Manz,
1986;Neck & Houghton, 2006), group potency, group self-
efficacy, and team cohesion (Bandura, 1997;Chen, Gully, & Eden,
2001;Guzzo & Shea, 1992) or team and task conditions on shared
team leadership effects.
Conclusion
The nature of global competition and continuing advances in
communication technologies means that virtual teams are an inte-
gral aspect of work structure worldwide. They challenge what we
know and need to know about leading and managing teams. We
hope that these findings help to advance additional research on the
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399
LEADING VIRTUAL TEAMS
role of leadership, and leadership supplements, for enhancing team
performance across the range of team virtuality.
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Received August 27, 2011
Revision received July 9, 2012
Accepted July 18, 2012 䡲
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