A multi-level analysis of the impact of shared leadership in diverse virtual teams

Although organizations are using more virtual teams to accomplish work, they are finding it difficult to use traditional forms of leadership to manage these teams. Many organizations are encouraging a shared leadership approach over the traditional individual leader. Yet, there have been only a few empirical studies directly examining the effectiveness of such an approach and none have taken into account the team diversity. To address this gap, this paper reports the results of an empirical examination of the impacts of shared leadership in virtual teams. Results confirm the proposed research model. The impacts of shared leadership are multilevel and vary by race and gender. In addition, while shared leadership promotes team satisfaction despite prior assumptions, it actually reduces rather than increases team performance.