When determining an effective way of leadership for a culturally diverse team there are various ways: directive (from directive to participatory), transactional (rewarding) or transformational influence. Leadership must ensure effective communication and understanding, clear and shared plans and task assignments and collective sense of belonging in team. Further, the role of a team leader is to coordinate tasks and activities, motivate team members, facilitate collaboration and solve conflicts when needed. This proofs that a team leader’s role in effective virtual team management and creating knowledge sharing environment is crucial.