Abstract

The emerging trend toward physically distributed work teams has necessitated a critical inquiry into the nature and roles of psychological contract and leadership in virtual settings. This study proposes a model based on social cognitive theory and social exchange theory to explain virtual team performance in the information technology industry. In the proposed model, virtual team performance is directly influenced by IT training fulfillment, transactional fulfillment, and knowledge-oriented leadership and also indirectly via the partial mediation of collective IT efficacy. This study adds to the burgeoning theoretical and empirical research on virtual teams by assessing the joint effects of psychological contract fulfillment and knowledge-oriented leadership. Empirical testing of this study at the team level, by surveying team members and leaders across two different points of time, confirms the integrated applicability of social exchange and social cognitive theories in understanding the development of virtual team performance.

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