E-leadership in distributed new product development teams: unveiling the interplay between performance, team emotional capability, and engagement

IntroductionDistributed work has made e-leadership central to how teams coordinate, connect, and perform through digital technologies. This is particularly important in distributed new product development teams, where uncertainty, time pressure, and reduced social cues intensify both coordination demands and emotional strain. Drawing on social exchange theory and leader, member exchange theory, this study investigates how e-leadership influences team performance through team emotional capability and team engagement.MethodsA mixed-method design was used. Preliminary qualitative work, including literature review and focus group discussions, informed the measurement of e-leadership in distributed software development teams. Survey data from distributed new product development teams in Türkiye were analyzed using partial least squares structural equation modeling with SmartPLS.ResultsE-leadership did not have a significant direct effect on team performance. However, it had a significant indirect effect through team emotional capability, indicating an indirect-only mediation pattern. Team emotional capability also mediated the relationship between e-leadership and team engagement. The sequential mediation pathway from e-leadership to team performance through team emotional capability and team engagement was not supported.DiscussionThe findings show that e-leadership improves distributed team outcomes primarily by strengthening collective emotional capability rather than by directly increasing performance. Team emotional capability appears to be a critical affective mechanism through which digitally mediated leadership supports engagement and performance in distributed new product development teams. The study contributes to e-leadership research by clarifying the emotional pathway linking digital leadership practices to team effectiveness and offers practical guidance for leaders seeking to build resilient, engaged, and high-performing distributed teams.