PurposeThe coronavirus disease 2019 (COVID-19) situation has led to the emergence of virtual teams in all organizations, and the role of leadership has become more pertinent. The current research focuses on understanding the factors for better team performance in virtual teams. Based on the contingency perspective, the behavioral complexity in leadership (BCL) theory is the most appropriate as BCL requires the leader to demonstrate multiple contrasting leadership behaviors according to the situation. Both internal as well external roles were explored, which could facilitate better communication quality and role clarity to increase interpersonal trust and leadership effectiveness in the current crisis.Design/methodology/approachData were collected from employees who have worked in virtual teams during the crisis and who have experience of working in a virtual team environment. A total of 200 questionnaires were distributed, and 175 were received. A path model was built applying partial least squares structural equation modeling (PLS-SEM).FindingsCommunication quality has come as a partial mediator for the relationship between internal and external leadership roles and trust. Role clarity fully mediated the relationship between external leadership roles and conflict. Internal and external leadership roles showed a significant effect on leadership effectiveness, which were further related to team performance in virtual teams. Additionally, synchronous technology was used more by virtual teams.Research limitations/implicationsThe study did not examine cultural differences or cultural adaptation in virtual teams. Instead of the BCL theory, future research may apply attribute-based or relational-based theory to examine leadership roles in virtual team performance.Originality/valueUsing the BCL theory, the current study contributes to an understanding of virtual team performance and the internal as well as external role of leaders. This is relevant in an environment of extreme ambiguity such as COVID-19.