Shared Leadership and Team Performance in a Business Strategy Simulation

Abstract

This study examined the relations between shared leadership in teams, team trust, potency, and performance. Forty-nine teams participating in a business simulation game rated their team potency, trust, and team leadership styles. Team potency and trust were positively related to shared transformational leadership and negatively related to passive avoidant leadership, but only the latter was significantly negatively related to team performance in the business strategy simulation. These results suggest that teams might not always benefit from transformational leadership qualities, but that “negative” leadership styles might be detrimental to performance and to the trust and confidence in the team.