The rapid advancement of technology, improvements in products and services, the global dispersion of customers, and intensified competition have collectively compelled organizations to continuously adapt, learn, and remain operationally flexible (Harrison et al., 2000). Notably, progress in real-time communication systems and Internet-enabled technologies has enabled geographically dispersed tasks to be completed efficiently, facilitating collaboration across different time zones (Montoya-Weiss et al., 2001). Consequently, sales organizations are increasingly leveraging virtual sales teams to perform remote work, meet customer demands, and achieve sales objectives (Mulki et al., 2008). According to Deeter-Schmelz and Ramsey, (1995) teams enable the integration of diverse information, leading to more informed decisions and coordinated efforts that ultimately enhance performance and responsiveness to customers.

Virtual sales teams have become especially popular as firms seek innovative methods to engage clients in the digital era, capitalizing on new technologies and the growing prevalence of remote work across industries (Rapp & Rapp, 2023). Technological advancements have facilitated the creation of virtual sales teams, empowering sales personnel to operate in ways previously unattainable, offering adaptability, promptness, and a variety of advantages (Martins et al., 2004). Huang et al. (2010) highlight that virtual team sometimes involve participants from diverse societies, time zones, geographic regions, and cultures, with  time zones, geographic regions, and cultures, with technology performing as the strength that enables smooth communication and cooperation among these spread members. 

Previous research on sales teams has underscored several aspects influencing their performance, including sales team effectiveness (Dixon, Gassenheimer, & Feldman Barr, 2003) and team selling appropriateness (Arnett & Badrinarayanan, 2005). Academics have also studied virtual sales teams, investigating their effectiveness (Badrinarayanan et al., 2011) and developing process models to understand their performance (Rapp et al., 2010). Even though increased attention in sales team research over the past decade (Rapp & Beeler, 2021), the domain remains in its early stages. Although studies such as Rapp et al. (2010) have shed light on some aspects of virtual sales teams, there is still a need for more comprehensive research, particularly given the growing number of salespeople working outside traditional office settings in virtual team contexts (Rapp & Rapp, 2023).

A critical factor influencing the success of virtual sales teams is leadership. Leadership is widely recognized as a key determinant of virtual team effectiveness, as it shapes team processes and outcomes (Gilson et al., 2015). However, traditional leadership theories cannot be uncritically applied to virtual teams, which possess unique characteristics such as geographical and organizational dispersion and a reliance on computer-mediated communication (Bell & Kozlowski, 2002). It is essential to understand how virtual sales team leaders, through their leadership styles and behaviors, can foster team processes like cohesion and technology orientation that drive team performance (Rapp & Rapp, 2023). While leadership has long been recognized as essential to the success of virtual teams, there remains a notable absence of empirical research examining its specific impact on virtual sales team performance (VSTP). With an increase in the number of organizations moving towards remote structures of sales, the knowledge gap of understanding leadership as a catalyst to pursue success in such environments is becoming more problematic. Lacking a strong evidence base, sales managers might find it hard to adopt approaches that are most appropriate to the peculiarities of remote work situations. Virtual operations are unique. Teams will have to develop a trust, keep things communicated, and remain engaged, and in many cases, not in face-to-face contact. Such situations require leadership strategies that are not only flexible but also sensitive to the differences of the world of digital teamwork. However, there is not enough information regarding the role of leadership strategies in directly affecting performance in such conditions. The study helps to resolve the gaps that have been presented in these factors by looking into the impact of Virtual Team Leadership (VTL) on the operation and performance of virtual sales teams. It pays special attention from the roles of Team Cohesion (TC) and Sales Technology Orientation (STO) two internal variables that are most probable to mediate the relationship between leadership and performance. This study is based on the Input-Process-Output (IPO) framework, which aims to unravel how leadership actions influence the team processes and consequently the results.

The study tries to fill a gap in the literature by adding evidence in this area. Meanwhile, it helps leaders to handle teams in a digitally mediated sales environment practically. A quantitative research methodology further educates the analysis by providing data, which are both theoretically and practically relevant, related to the leadership practice.

Theoretical background and Hypotheses development 

Input Process Output (I P O) Theory

Teams are mostly considered as dynamic or fluid systems that changes and adapts to create their own environmental changes. Arrow et al. (2000) assert that teams are dynamic and kaleidoscopic ones, which grow in the course of constant interactions that are determined by their internal processes and outside effects. This perception defeats the mere cause and effect meaning of team behavior as we should learn how team workers react to the particular situations within which they work.

One of the most well-grounded models of analyzing team performance is the Input- Process- Output (IPO) one, known under the same title since the term was coined by McGrath, (1964) but further developed by such researchers as (Steiner, 1972; Hackman, 1987). In the proposed IPO model, team performance is thought of as results of inputs or the capabilities of members, the team structure, and environmental conditions, which are screened by the team processes, or team coordination, communication, and cohesion. The outputs of these processes, in their turn, condition such aspects as team effectiveness and satisfaction, as well as the measurable performance results. In one of the earlier uses of this model, those by Gladstein, (1984) focused on sales teams and reached the conclusion that factors like; effective leadership, effective communication, good interpersonal relationships and team tenure were related to perceived performance and job satisfaction but not necessarily objective outcomes, such as revenue levels. Based on this theoretical background, the current study uses the IPO model to get an improved insight into the working of virtual sales teams. In that regard, VTL is regarded as its main input that determines most important types of internal processes. Two of them, TC and STO, are suggested to serve as the mediators that would allow understanding the conversion of the leadership practices into performance outcomes. Outputs that are going to be taken into account in this study include, among other indicators, the productivity of teams, satisfaction of clients, and efficiency of performance. This framework provides the research with a more in-depth view of the role leadership plays in virtual settings, especially in the more technology-savvy and geographically spread setting of contemporary sales teams.

Virtual Team Leadership

It has been determined that leadership has been viewed as one of the most significant factors that determine the effectiveness of the team and this at the virtual places this is more so raised. The study conducted by Morgeson, DeRue and Karam, (2010) corroborates the fact that leadership is one of the giant constructs of success in virtual teams as in most cases Managerial routines and physical presence control are absent. Within this kind of environment, virtual leaders cannot simply coordinate the work; rather they have to coordinate team members who are distributed in the virtual platforms with the aid of messaging system, video conferencing applications, and collaboration software among others to achieve the shared goals.

Virtual leadership does not assume that the interaction is confined only to technical supervision, and it has nothing to do with the philosophy of the creation of the successful work relationships and easing of the key interpersonal processes. The element of structure and cohesion in any physically absent team must be kept by good virtual leaders as Zigurs, (2003) notes. The need to create a psychologically safe environment to communicate and share responsibilities and roles, to make the team interested and follow the path in its lifetime may be felt by them very often. Research also adds more data on the relevance of communication in virtual leadership. The same results were confirmed by (Sudweeks and Simoff, 2005; Yoo and Alavi, 2004) who spoke of leaders who communicate frequently and meaningfully, and who thus tend to be perceived as effective in the eyes of their team. Such domain as clear and appropriate communication turns to be extremely important in a trusted, inspiration, and misconception-free environment, where unspoken communication is either severely limited or does not exist at all, in the virtual environment. This is more than regularity, but sensitivity to tone, clarity, and sensitivity to context.

Moreover, great virtual leaders become sensitive to the technological capacity of their groups. They are involved in the active role of guaranteeing that the team members have the skills to use the communication tools effectively and also see that the picked technologies can support the choice and preference of the team work (Zigurs, 2003). Matching digital tools to the team's specific needs - considering factors like prior experience, technical competence, and task complexity - is essential for supporting smooth collaboration and ensuring successful outcomes in virtual projects. Furthermore, virtual leadership requires ongoing attentiveness to the shifting dynamics of remote teams. Cascio and Shurygailo, (2003) emphasize that virtual leaders must be responsive to evolving team contexts, adapting their leadership strategies to emerging challenges such as fluctuating motivation levels, coordination difficulties, or technological disruptions. This adaptability ensures that leaders remain effective even as team structures and tasks evolve over time. Unlike traditional team leaders, they cannot rely on direct authority to compel compliance; rather, they must influence and motivate team members to align with team objectives (Connaughton & Daly, 2004). In the sales context, while virtual work offers flexibility, it can also lead to feelings of isolation among salespeople, potentially undermining performance and engagement (Marshall et al., 2007).

Virtual sales teams rely on computer-mediated communication, presenting leaders with additional challenges, such as fostering trust without face-to-face interaction and selecting technologies that support collaboration (Hardin et al., 2007). Effective virtual leadership also involves implementing organizational justice principles - treating subordinates fairly, managing biases, and providing clear decision-making explanations - which fosters trust and encourages TC (Flavian et al., 2019). Trust in the virtual leader can motivate team members to engage in behaviors that exceed formal role expectations, strengthening TC and belonging (Flavian et al., 2019). Overall, VTL has been identified as a key driver of virtual team performance (Hertel et al., 2005). Thus, this study proposes the following hypotheses:

H1: Virtual team leadership positively influences the performance of virtual sales teams.

H2: Virtual team leadership positively influences team cohesion.  

H3: Virtual team leadership positively influences the sales technology orientation of virtual sales teams. 

Virtual Sales Team Cohesion

The absence of physical presence and nonverbal cues in virtual work settings introduces distinct challenges to team interaction and coordination. Comparing it to in-person communication, virtual conversation usually lacks contextual cues available to humans such as gestures, tone of voice and unplanned response to give meaning to the communication. As a result, team members might have problems to judge the intentions of other people, to read their behavior properly, or to develop some common informal norms about expectations, reactivity promptness, and quality of work. Such restrictions may be associated with an increase in the potential of misunderstandings and result in the misplaced efforts or unequal performance (Kayworth & Leidner, 2002). Overall, Team cohesion or how people are connected on a personal level with one another and are committed to the team as an entity has been identified a long time ago as one of the key variables in team performance. There is also a strong body of literature supporting the positive correlation between cohesion and performance outcome (Carless & De Paola, 2000; Yang & Tang, 2004). Cohesive teams are likely to influence one another better, and they are more likely to coordinate behaviors and attitudes in such a way that would facilitate cooperation and conformity. Such unity enables more easily resolving conflicts, initiating innovation, and enhancing the team flexibility and its resiliency towards any difficulties (Dey & MP, 2020; Friedkin, 2004). Besides, cohesion strengthens unity of purpose, leading to development of trust, psychological safety and a collision sense of belonging (Carlson et al., 2017). 

In the case of sales teams that are almost virtual, cohesion is quite difficult to nurture, and unavoidable at the same time. Dependency on technologies of digital communication is restricting informal communications, which normally created relationship building and sharing knowledge. These relationship dynamics cannot be absent in virtual teams otherwise, these teams will not have a sense of engagement and common direction. Therefore, building cohesion within the virtual worlds may need constant and consistent leadership. Those leaders that focus on open communication, common purpose formulation, and proactive generation of the culture of helping each other may assist in creating a solid environment that mitigates the isolating impact of distributed work (Kayworth & Leidner, 2002). According to this argument, the hypothesis below will be postulated:

Hypothesis 4: Team cohesion has a significant positive effect on virtual sales team performance.

Sales Technology Orientation of the Team

The sales technology orientation can be defined as the ability and readiness of a salesperson to succeed in exploitation of the offered information technologies of an organization to perform activities assigned on his or her job description (Hunter & Perreault Jr., 2006). This is more than just a simple acquaintance to such tools as customer relationship management (CRM) platforms or sales automation software; it involves the analytical abilities to analyze and interpret customer data and employ it properly. In essence, STO is the capacity of a salesperson to apply digital technology in his/her business operations to enhance customer satisfaction, efficiency in sales operations, and on the ability to make knowledgeable decisions. Empirical studies have been recommending over time the importance of technology orientation in improving the effectiveness of sales. Research findings by (Hunter and Perreault Jr., 2006; Sundaram et al., 2007) show that technology-savvy sales people are in a better place to utilize and integrate customer knowledge, thus being able to customize their approaches and to address client needs more effectively. Such competencies do not only help to achieve better sales results but also increase job satisfaction. Furthermore, high technology orientation of salespeople, accompanied by solid ICT infrastructure and organizational reinforcement, is likely to result in even more positive reports regarding the work experience, as well as enhanced performance indicators (Limbu et al., 2014).

Technology orientation assumes particular significance in the case of the virtual sales teams. Since these teams use digital links to communicate, work and connect with the clients, one needs to know how to work around the technology and accept technology usage in the team. Technologically skilled teams can more easily incorporate digital instruments into their routine, adjust to the new systems, and use innovations that improve the sales progress. The low degree of technological fluency, on the contrary, may result in inadequate use of tools, wrong communication, and the overall deterioration of efficiency and harmony. Therefore, we propose as follows:

Hypothesis 5: Sales technology orientation of the team has a significant positive effect on virtual sales team performance.

Mediating Effects of Team Cohesion and Sales Technology Orientation

Leadership is an essential aspect that determines several organizational outcomes, which include customer satisfaction, sales performance, employee dedication, and job-related satisfaction (MacKenzie et al., 2001; Humphreys et al., 2003). Within the context of virtual sales teams, the significance of leadership is amplified. Given the absence of physical proximity and the reliance on digital communication tools, effective leadership becomes essential for maintaining TC and encouraging the productive use of sales technologies. Both of these factors are critical for driving team-level performance and ensuring that virtual teams function smoothly and efficiently.

TC as a Mediator

TC can be understood as the extent to which team members experience a sense of camaraderie, mutual trust, and respect, resulting in a collective dedication to shared goals. In virtual environments, where face-to-face interactions are limited, fostering TC becomes more challenging yet more critical. Leaders can influence TC by promoting open communication, establishing clear goals, and encouraging collaborative behaviors (Dionne et al., 2004). Enhanced TC has been linked to improved team performance, increased satisfaction, and greater adherence to group norms (Carless & De Paola, 2000; Yang & Tang, 2004). In virtual sales teams, cohesive units are more likely to exhibit shared objectives, trust among members, and effective communication, all of which contribute to superior sales outcomes. Therefore, it is hypothesized that:

H6: Team cohesion mediates the relationship between virtual team leadership and virtual sales team performance.

STO as a Mediator

Sales technology orientation refers to a team's inclination and ability to effectively utilize information and communication technologies (ICTs) to carry out sales-related functions (Hunter & Perreault Jr., 2006). In the context of virtual sales environments - where digital tools form the backbone of communication, client engagement, and task coordination - this orientation becomes a critical determinant of performance. The teams with a high level of technology orientation are generally more capable of using the digital platforms, customer relationship management, and implementing strategic customer sales programs efficiently. Leadership is very crucial in the creation and maintenance of such technological prowess. Leaders can remarkably enhance the technological competence of their teams through specially tailored training, the sharing of suitable digital tools and building a team culture of flexibility and creativity. With this kind of backing, teams will be more prone to adoption of systems such as Customer Relationship Management (CRM) systems, sales automation systems and virtual means of communication in to their daily activities. Such a higher level of technological preparedness helps increase efficiency in workflow, more engagement with the clients, and more effective sales performance, on average (Sundaram et al., 2007; Limbu et al., 2014). It is on this basis that the next hypothesis is put forward:

H7: Sales technology orientation mediates the relationship between virtual team leadership and virtual sales team performance.

Conceptual model

The study is an empirical study that examines the effects of VTL as the independent key variable of team performance in a virtual sales team. 

Fig. 1: Conceptual model of the study.

In a bid to get a better insight of this relationship, two important process variables, TC and STO are also taken into consideration in the study as mediators. These variables are included into a conceptual model which presents how proposed mechanisms of leadership influence team performance. The framework, presented in Fig. 1, reflects the theoretical structure guiding the study's hypotheses.

Sampling design

Participants in this study were selected from individuals actively working in sales positions within Bangladeshs fast-moving consumer goods (FMCG) sector. Data collection took place over a two-month period, spanning February to March 2025. A structured, self-administered questionnaire was distributed in printed form across several districts, ensuring broad regional representation. To confirm eligibility, respondents were first asked to verify their current involvement in sales-related activities; only those who confirmed active engagement were included, while others were excluded from the sample. A purposive sampling approach was adopted to align participant selection with the studys specific objectives. This non-probability sampling method was chosen for its suitability in identifying individuals with relevant experience and has been widely applied in empirical research of this nature (Kalam et al., 2023). Upon completion of the data collection phase, all responses were reviewed for completeness and consistency. Out of 296 questionnaires returned, 14 were discarded due to missing or invalid data, resulting in a final sample of 282 valid cases used in the subsequent statistical analysis.

Measurement tools

The present study relied on a structured self-administered questionnaire as part of collecting data. Each of the items was rated on a seven-point Likert type, whereby 1 was scored as strongly disagree; 7 as strongly agree. A concern of the purpose of the questionnaire was given to the participants in a short explanation before giving the participants the proper instructions to facilitate a correct and informed answering of the questions in the questionnaire. The development of the instrument was carried out until its completion, which consisted of 31 items that could be used to gauge the four core constructs of the research: VTL, TC, STO, and VSTP. The scale of VTL items was adapted based on the measure that was suggested by Newman et al. (2020). TC was assessed on the basis of items used by Carless and De Paola (2000). STO construct was also measured through an instrument tailored to the one utilized by Hunter and Perreault Jr., (2006) whereas the scale focused on assessing the performance of the virtual sales team has used relatively similar items to the one used by Auh et al. (2014).

Demographic Overview

The sample of the study is composed of 282 people who are involved in sale oriented jobs. Majority of these respondents were males (79.8%) whereas females took up 20.2%. Under age distribution, there was the majority of 67.4 percent of people between the age bracket of 21 to 30, 19.9 percent aged between 31 and 40. In terms of education, 44.3 percent of subject participants had a postgraduate education, and 40.8 percent were an undergraduate degree holder. In the marital status, 63.1 percent were married and the rest of the 36.9 percent were not married. The entire sample varied in their sales experience. More than a half (50.4) added they had worked between two and five years, whereas 27.7% workers had had experience of working in sales between six and ten years. And 13.5 percent experienced between one year or less and 8.5 percent had above eleven years in the area. This is a good source of balanced opinion that can be brought to the interpretation of the study findings as it comprises of a broad angle of opinions that the sales profession needs. The demographic data of the respondents are included in Table 1.

Table 1: Demographic information.

Evaluation of Measurement Model Fit

Some commonly used model fit indices were estimated to determine whether the measurement model is satisfactory or not as there are several of them as Standardized Root Mean Square Residual (SRMR), d_ULS, d_G, Chi-square, and the Normed Fit Index (NFI). The SRMR of the model suggested was 0.069, which is diminished of the generally accepted value of 0.08, showing a good fit of the model (Henseler et al., 2015). The d ULS and d G discrepancy values were also considered to be reasonable with 1.547 and 0.546 respectively and were very similar to the numbers of the saturated model (1.486 and 0.542). It indicates little difference between empirical and model-implied correlations matrix. The Chi-square statistic for the estimated model was 845.74, slightly exceeding the saturated models value of 844.27. However, such a difference is expected due to the additional constraints applied in the estimated model. The Normed Fit Index (NFI) was calculated at 0.831, which, while marginally below the conventional cutoff of 0.90, is still considered acceptable within the context of exploratory research (Bentler & Bonett, 1980; Henseler et al., 2016).

Overall, the collective fit indices support the adequacy of the measurement model, indicating a reasonable level of goodness-of-fit and affirming the models suitability for further analysis.

Measurement Model Analysis 

To assess the reliability and validity of the measurement model, several key diagnostic criteria were examined. These included indicator loadings, Cronbachs alpha, rho_A, Composite Reliability (CR), and Average Variance Extracted (AVE). The results, summarized in Table 2, were evaluated against established thresholds to ensure the robustness of the model. It was done according to common rules where eight indicators with an outer loading lower than the suggested standard of 0.70 was discarded in order to enhance accuracy and precision in the end measurement structure. The other indicators proved to be fairly reliable and the convergent validity. A bootstrapping procedure on the outer loadings (5000 subsamples) was done to indicate the statistical significance of the outer loadings. The total of the retained items was significant at the level of 5% and the majority surpassing the 0.70 indicates their strong associations with the latent constructs and compliance with internal validity of the measurement model.

Table 2: Construct Reliability and Validity.

All constructs already obtained acceptable levels of internal consistency in terms of reliability as all constructs will receive Cronbach alpha value at least equal to the universally established 0.70 (Hair Jr. et al., 2019). The values of composite reliability were 0.907-0.930 which strengthened the consistency of constructs. In addition, the AVEs of all constructs were more than 0.50, explaining the results suggested by Fornell and Larcker (1981), 0.605 and 0.670 respectively. These findings reveal that every construct contributes greater than 50 percent of the variances in indicators under which they fall thus complying with the standard of convergent validity. Fornell-Larcker criterion was applied to measure discriminant validity. By this approach, the square root of AVE of construct is expected to exceed the correlations of each construct to any other ones within the model. As indicated in the results (see Table 3), the square root of AVE diagonal values were always greater than the off-diagonal correlation ones, which implies that the discriminant validity was reached.

Table 3: Fornell–Larcker criterion.

To address the shortcomings linked to the Fornell-Larcker criterion, the present work also used the Heterotrait-Monotrait (HTMT) ratio of correlations, as suggested by (Henseler et al., 2015), to test the discriminant validity once again. HTMTs of all the constructs, VTL, TC, STO, and the performance of the Virtual Sales Teams were found to be not higher than 0.850 usually accepted values (Huang et al., 2017) as depicted in Table 4. The confirmations made by these findings assure that the constructs in the model are empirically separate and hence provide discriminant validity of the data using the HTMT approach.

Table 4: Heterotrait-Monotrait Ratio (HTMT).

Structural Model Results

Structural path analysis was conducted to test the direct relationships among the study variables. The results are presented below: H1 proposed that VTL has a direct positive effect on VSTP. The hypothesis was supported (β = 0.584, t = 8.394, p < 0.001), indicating that effective virtual leadership significantly enhances sales team performance. H2 examined the relationship between VTL and TC. A strong positive effect was found (β = 0.690, t = 19.754, p < 0.001), supporting the hypothesis that VTL fosters TC. H3 tested the effect of VTL on STO. The results revealed a significant positive relationship (β = 0.697, t = 17.715, p < 0.001), confirming that strong virtual leadership positively influences the teams orientation toward technology. H4 explored whether TC significantly predicts VSTP. The relationship was not significant (β = 0.009, t = 0.1540, p = 0.878), leading to the rejection of H4. This suggests that TC alone does not directly impact sales team performance in virtual contexts. H5 examined the effect of STO on VSTP and was supported (β = 0.263, t = 4.313, p < 0.001), indicating that greater adoption and orientation toward sales technologies positively contributes to VSTP. 

Table 5: Path Model Results.

Overall, these findings provide partial support for the proposed model, highlighting the critical role of virtual leadership and sales technology in enhancing virtual team outcomes. In the current study, the R² value for VSTP was found to be 0.633, suggesting that VTL, TC, and STO collectively account for 63.3% of the variance in VSTP. Similarly, the R² value for TC stood at 0.476, indicating that VTL alone explains 47.6% of its variance. Additionally, the R² value for STO was 0.485, meaning VTL accounts for 48.5% of the variance in this construct. Following Cohens, (1988) guideline, R² values of 0.26 or higher are interpreted as reflecting a substantial effect size. These findings confirm the strong predictive power of the model. A detailed summary of the hypothesis testing outcomes is provided in Table 5 and visually represented in Fig. 2.

Fig. 2: Estimated Path Model and Hypothesis Validation.

Mediation Analysis

To investigate the mediating roles of TC and STO in the relationship between VTL and VSTP, a bootstrapping procedure with 5,000 resamples was employed. The analysis revealed that the indirect effect of VTL on VSTP through TC (H6) was not statistically significant (β =0.006, t = 0.153, p = 0.879), leading to the rejection of Hypothesis 6. This finding suggests that, within the context of this study, TC does not serve as a significant mediating mechanism between leadership and team performance. 

Table 6: Mediation Summary.

In contrast, the indirect effect of VTL on VSTP via STO (H7) was found to be statistically significant (β = 0.183, t = 4.053, p < 0.001), providing support for Hypothesis 7. This result indicates that STO functions as an effective mediator in the relationship between VTL and sales performance. A detailed summary of the mediation analysis is presented in Table 6.

The aim of this study was to investigate the impact that VTL has on the performance of virtual sales teams and particularly, the mediating values of TC and sales technology orientation. The results indicate a subtle group of relations that can inform the understanding of the way leadership works in digitally mediated spaces. Consistent with the previous findings, the findings show that there is a clear positive significant impact of VTL on team performance. This confirms the long-held opinion that strong leadership is important to the success of geographically dispersed teams (Avolio & Kahai, 2003; Malhotra et al., 2007). Nevertheless, even in the virtual environment, leaders can significantly improve team productivity and goal achievement when they give clear directions, offer emotional support, and/or provide a well-coordinated structure, even when they do not meet their employees face-to-face.

In addition to its direct effect on the performance, it was also discovered that the leadership of virtual teams has positive effect on the cohesion of the team and the STO. This study lends validity to the view that transformational leadership is an extremely potent instrument in accomplishing unity and focus amid teams through its ability to impart endless communication and unite forces towards shared goals (Gibson & Cohen, 2003). The close connection between the leadership and technology orientation also indicates the role of a leader as the initiator of the digital tools usage which is a mandatory aspect of the work in the environment where technology is among the most important factors of communicating, collaborating, and customer- relations managing (Huang, 2020). 

It is interesting to note that, TC had no direct influence on performance but STO positively and significantly influenced performance. This surprising finding could lead one to believe that technical ability may prevail over interpersonal connecting as a factor of success of a team in the circumstances of virtual selling. Digital preparedness and flexibility in virtual team performance has also been described in the literature previously (Jarvenpaa & Leidner, 1999; Purvanova, 2014). The capability of exploiting the digital tools could be more important than the impact of the relations within the environments where the daily work is technologically intermediate. The mediation analysis further explains such associations. The strong mediator was STO, i.e. leaders can positively influence performance through increasing the technological interest of their subordinates. By making sure that the necessary tools are in place, facilitating the digital competence and allowing incorporating technology into the daily business processes, such leaders contribute to the creation of the environment that is key to successful virtual teams (Malhotra et al., 2007).

Contrary, the mediating position of TC in the relationship between leadership and performance was not established. Although trust and psychological safety can still be developed by the leaders, these qualities are not likely to yield the improved performance without the help of the effective technological compe-tence. The given finding corresponds to the recently published study that claims that the digital fluency and not solely the interpersonal cohesion is a remote work determinant of success (Tavoletti et al., 2025).

Finally, the findings of the present study do little to raise any doubts with regards to the multidimensionality of the role of VTL in occasioning performance outcomes. Cohesion in building, although it appears to be a handy item as far as team moral and stability are concerned, its Impact is not so immediate and measurable as that of strengthening STO. These findings are included in the enhanced comprehension of the procedures virtually in teams and the significance of the leadership style that places an accent on the interactivity in technology in the current digitally hooked up sales universe.

Implications

Theoretical Implications

The study adds to the theoretical discussion of virtual sales teams by means of extending the Input--Process--Output (IPO) model (McGrath, 1964) in order to determine the dynamics of leadership in digitally mediated work environments even more. Input to outputs According to the IPO theory team performance is attained through a transformation of inputs which include the leadership behaviors into outputs through the important intervening processes which represent the social and task-oriented processes. The findings enable the presumption of the pivotality of VTL as an input, which galvanizes crucial inner processes particularly, TC and STO. STO was a better mediator among them, and that proves the increasing importance of technological skills in virtual teams. The team success is particularly reliant on the dexterity and orientation in technology due to the context of work in which the majority of teamwork, communication, and interaction with the customers are arranged through the digital channels (Huang, 2020).

The lack of the direct correlation between the TC and the team performance gives the argumentative disproof of the prevalent interpretations of the IPO model, which are inclined to concentrate on the significance of socio-emotional processes that determine the team effectiveness (Gibson & Cohen, 2003; Purvanova, 2014). In the conditions of virtual sales teams, when the volume of face-to-face interaction is minimized to the minimum and communication is split through the prism of digital infrastructure, interpersonal connection may become the secondary, rather than the primary element. The implication of such an observation is that the IPO model must be revisited and reformulated to consider the harsh realities of virtual teamwork -especially those that are defined by a high level of technological interdependence (Tavoletti et al., 2025).

Collectively, the given study substantiates the notion that IPO framework is still useful in predicting team performance but one should also consider changes in the context of work design. Process variable effects like technology orientation may induce a shadow on the effects of the traditional constructs of relations in digitally intensive environments. The provided insights will contribute to the further expansion of the team theory by encouraging the use of the classical models in more context-specific ways in a contemporary technology-driven work environment.

Practical Implications

At the managerial level, the outcomes of this research study Virtual team leaders should get their hands dirty in enhancing both of the two fundamental process variables identified in the IPO framework TC and STO. The mediating importance of technology orientation said, warrants certain level of attention to be paid to the enhancement of the digital fluency of virtual sales teams. At that, leaders are advised to express support regarding the usage of the respective digital tools and make sure that their staff is trained appropriate so that they could feel somewhat competent and confident working in an online environment. These habits may also be instilled by example; the smart use of the available communication channels and digital sale systems. These efforts positively influence the correlation directly between the leadership contribution and the process-level performance that falls in line with the IPO model suggestion to focus on the shift of managerial activity into the profitable team activity (Malhotra et al., 2007).

In this study, TC was not directly connected with performance but; this is one of the aspects that one cannot overlook when overall functionalism of virtual teams is considered. The long-term stability, emotional stability and psychological security can be attained through the process of building the interpersonal trust and the sense of mutual responsibility. The performance implications of these relationship foundations will not be directly felt by high-pressure sales cultures, but they are the secrets to keeping morale and engagement over the long term. To build unity, the leaders can revert to the already established communication rituals, virtual team building activities, and the efforts of establishing shared goals and values.

Limitations and Future Research Directions

While this study provides meaningful contributions to our understanding of how VTL influences the performance of virtual sales teams, certain limitations must be recognized. Each of these constraints opens potential avenues for future investigation and refinement of the current findings. First, the cross-sectional design of this study constrains the ability to establish causal relationships among leadership behaviors, team processes, and performance outcomes. While the Input - Process - Output (IPO) framework (McGrath, 1964) provides a robust theoretical foundation, longitudinal research would be better suited to capture the evolving nature of team dynamics and offer stronger causal inferences. Such designs could illuminate how leadership influences team development over time and how process variables fluctuate across different project phases (Malhotra et al., 2007).

Second, the reliance on self-reported data for all constructs introduces the potential for common method bias. Although procedural measures - such as ensuring anonymity - were implemented to reduce this risk, the use of objective performance indicators, such as sales conversion rates, customer retention figures, or system usage logs, would offer a more balanced perspective and enhance the validity of the findings (Podsakoff et al.,).

Third, the study was conducted within the specific context of virtual sales teams, which, while increasing the studys practical relevance to sales environments, may limit the generalizability of the results. Other types of virtual teams - such as those engaged in project management, software development, or cross-functional collaboration - may operate under different dynamics and constraints (Gibson & Cohen, 2003). Future research should explore whether the relationships identified here hold in a broader range of virtual team contexts. In addition, although the IPO framework guided the investigation, the study focused exclusively on two process variables: TC and STO. While both are highly relevant to virtual sales environments, other process-oriented constructs - such as communication quality, trust, psychological safety, and conflict management - may also play a significant role in mediating the relationship between leadership and team performance (Jarvenpaa & Leidner, 1999; Purvanova, 2014). The further introduction of variables into the framework can assist in obtaining a complete image of the prerequisites according to which the performance of virtual teams should be conducted.

The other prospective, as well as, maybe applicable topic of the subsequent study is investigation of possible moderators which might affect the intensity of and/or the direction of those adopted in the IPO model. There is a possibility that the question of translating leadership into the efficiency of the processes and performance may be characterized by such aspects as the team tenure, the complexity of tasks, the practice in a specific industry, or even the level of organization support regarding digital technologies (Tavoletti et al., 2025). The moderating factors, which would most probably explain on the specific circumstances when the leadership of the virtual team would be most effective, should be included in the future research studies. Finally, additional studies, which combine objective performance test, long-term studies, and strengthen the theoretical domain in order to add other processes and moderators, will help more generic and practically applicable knowledge to exist regarding leadership in a virtual team. Such sort of research can be called the best one concerning academical contribution and its utilization because of the circumstances of the continuous change of the character of work in the direction of the increasing digitization and spatial decentralization.

The aim of this study was to determine how VTL influences the performance of virtual sales teams and to do this the Input--Process--Output (IPO) framework was used to analyze the mechanisms through which leadership might influence team performance. The results indicate that VTL directly and positively influences the team performance as well as plays an important role in the formation of the two essential internal processes, namely TC and STO. Among the two, the STO was a significant mediating variable, and it implies that digital competence is one of the important mechanisms that leadership uses to improve team efficacy. Conversely, whereas the leadership positively affected TC, it did not directly affect the performance outcomes in this context. These insights prove why the notion of technological fluency matters more in virtual sales environment. Leaders that are able to promote use and effective employment of the digital tools are at the advantage to improve in the aspects of responsiveness of their team, their performance, and relationships with their clients. Cohesion, in its turn, is not a performance driver per se, but it is a quite valuable component of the team spirit and psychological safety (which is especially true when it is backed up by a sufficient technological foundation). The virtual environment leadership based on IPO model and its precise processes according to which the activity of leadership produces the result can be viewed more clearly in the study. This STO is simply the result of the larger change in the dynamics of teams, in which digital tools are no longer a supplement to but a common driver of how teams were organized and perform. The practical usefulness of the given study lies in the fact that it could be used to guide not only the intellectual but also the organizational behavior. Theoretically, it can be applied to learn more about virtual team behavior by finding out factors, on which the impact of leadership performance is conditional. As far as practical implications are concerned, the findings possess the practical implication that could be utilized by organizations that are willing to make sure that virtual sales teams perform effectively.

M.H.R.: was responsible for conceptualizing the study, designing the methodology, conducting the formal analysis, and preparing for the first draft of the manuscript. M.Y.R.: contributed to data collection, assisted in methodology development, and collaborated in reviewing and editing the manuscript. Both authors read and approved the final version. 

The authors would like to express their sincere gratitude to all respondents who generously shared their time and insights for this research. Their valuable contributions made this study possible. The authors also thankful to the students of the Marketing department of Gopalganj Science and Technology University for their assistance in the data collection process. Their dedication and support were instrumental in completing this research successfully.

The authors confirm that there are no financial, personal, or other conflicts of interest that could have affected the objectivity, findings, or interpretations of this study.