Abstract
The prevalence of virtual teams has surged in recent years. Despite the numerous benefits associated with virtual teams, they also present challenges, particularly for effective leadership. This paper explored the development of LMX (Leader-Member Exchange) relationships within virtual teams. We adopted a qualitative inductive approach, focusing on the leader’s perceptions and experiences of LMX relationships in the context of virtual teams. Our data was obtained from managers (N = 12) having prior experience in leading virtual teams. Thematic analysis of the interviews revealed three overarching themes – leaders’ expectations from LMX relationships, nuances of virtual media, and navigating and adapting to the complexities of the virtual environment. Our results contribute to both LMX theory and Social Information Processing theory. Further, the findings have practical implications for organisations and leaders.