The vulnerability of virtual leadership consistently arises when few studies could answer “what happened in the virtual team” and “why traditional leadership is less functional”. In line with this research theme, we adopt social exchange theory and offer our fundamental proposition that instrumental and socioemotional resource exchanges in leader-member exchange (LMX) and member-member exchange (MMX) dramatically collapsed. To better depict the exchange processes, we compile exemplifications of currencies in social exchange relationships from past studies in LMX and MMX contexts. Next, we borrow the literature on team geographical composition and two theories regarding social interactions in virtual teams (i.e., social presence theory and media richness theory) to depict the dynamic processes intricately. In conclusion, we point out that there is an asymmetrical filtration on the two forms of resources, adversely impacting LMX, MMX, and leadership functions. Furthermore, catering to the characteristics of a virtual team and two forms of resources, we offer strategies to manage the virtual instrumental and socioemotional resources.
