Impact of Leadership Styles on Team Effectiveness and Performance

This master’s thesis explores the impact of leadership styles on team effectiveness and performance within Engineering Multinational Virtual Teams (EMVTs). Amid the rise of remote and hybrid work models post-COVID-19, EMVTs present unique challenges due to their intersection of technical complexity, virtual collaboration, and cultural diversity. The study investigates how different leadership styles—Transformational, Transactional, and Passive Avoidant—affect team dynamics and outcomes.
Combining a comprehensive literature review with quantitative empirical research, the thesis utilizes validated instruments: the Multifactor Leadership Questionnaire (MLQ) and the Teamwork Big Five Questionnaire for Hybrid/Remote Teams (TBFQHR). Data from 49 valid responses were analyzed using descriptive, reliability, and inferential statistics, including MANOVA and ANOVA tests.

Key findings reveal that Transformational and Mixed Transformational-Transactional leadership styles significantly enhance team performance, particularly in areas such as Shared Goals, Coordination, and Motivation. Conversely, Passive Avoidant leadership correlates with lower effectiveness. The study confirms the uniqueness of EMVTs, validates the relationship between leadership style and team performance, and suggests that blended leadership approaches may offer optimal results in complex, multicultural virtual environments.

The thesis concludes with managerial implications for leadership development and team management in global engineering contexts, and outlines future research directions to further explore mixed leadership dynamics.