Team Dispersion and Performance: The Role of Team Communication and Transformational Leadership

Organizations increasingly rely on virtual teams to access geographically dispersed expertise. Yet, team dispersion introduces challenges to team communication that may negatively influence team performance. Using a sample of 53 innovation teams representing a variety of geographic dispersion configurations from completely collocated to highly dispersed, we examined the moderating role of transformational leadership on the relationship between team dispersion, team communication, and team performance. Our findings suggest that while transformational leadership is effective in reducing the negative effects of dispersion in collocated teams or ones with low levels of geographic dispersion, it is less effective helping improve the performance of highly dispersed teams. This effect may be due to a transformational leader’s difficulty in facilitating team communication in highly dispersed teams, where his or her influence might actually have counterproductive effects. We discuss the implications of our findings for theory, future research, and practice