The introduction of the virtual work environment has resulted in the creation of a new work structure where interaction between employees and leaders occurs through technological innovations such as teleconferencing, emails, and text messages. The absence of physical workspace has also created a diverse work environment with people from various cultural backgrounds working together as virtual teams. Existing studies have been conducted on leadership styles and culture in the traditional work environment, but few empirical studies have been conducted on leadership styles and culture in the virtual work environment. The purpose of this quantitative, nonexperimental survey study was to identify the relationship between cultural backgrounds and leadership styles in the virtual work environment. The data were collected by an online survey using the Bass and Avolio multifactor leadership questionnaire and Hofstede's cultural value survey module from a random sample of 303 participants with leadership roles in virtual work environments. Pearson correlation analysis was used to test the relationship between the dependent variables, transactional and transformational leadership styles, with the independent variables, being power distance, uncertainty avoidance, individualism, and masculinity. The results of the study showed a negative correlation between the transformational and transactional leadership styles for individualism and uncertainty avoidance. There were no correlations between femininity and power distance for the transformational and transactional leadership styles. The study contributes to social change by confirming that cultural backgrounds can impact the effectiveness of the transactional and transformational leadership styles, regardless of the work environment. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://bibliotheek.ehb.be:2222/en-US/products/dissertations/individuals.shtml.]