The rest of the paper is organized along the following lines. First, a very brief
overview of VT literature is offered. Next, leadership literature in the virtual context is
presented. Then, leadership capabilities that are embedded in the theory of
transactional and transformational leaderships are identified and categorized as
cognitive, social and behavioral capabilities. Thereafter, based on Hertel et al. (2005),
various stages of VT life cycle are explained and research propositions are offered
showing how different types of leadership capabilities relate to each of these VT
life-cycle stages. The paper concludes by summarizing the proposed framework