The purpose of this qualitative study was to explore the influence a simulated virtual team learning experience had on business school students' leadership competencies. The researcher sought to discover the relationship between filling the leadership role in the simulated virtual environment and developing leadership competencies. A constructivist grounded theory approach was the method used to conduct the study. The question this study answered was: what are business school students' perceptions regarding their leadership competencies given the opportunity to lead a virtual team within the simulated virtual environment of the Capstone Course? The study was conducted within the virtual environment in an effort to expand the use of online interviews to collect data in a qualitative research study. Utilizing purposeful sampling to focus on a specific time and place, the Capstone Course, 11 graduates of a bachelor of business administration degree were interviewed. Data from qualitative interviews were coded using a firm-coding process to explore the development of four predetermined leadership competencies: (a) leadership employees; (b) building and mending relationships; (c) change management; and (d) participative management. These four leadership competencies encompass many of the skills and abilities identified through the existing literature needed to lead in the virtual environment. The data as revealed through the participants' responses to open-ended interview questions and the analysis conducted on the data presents support that leadership competencies seemed to be developed through the simulated virtual environment. The findings of this study may be used by educational organizations to enhance leadership training programs. The researcher sought to add to the body of knowledge on leadership development for the virtual team using grounded theory methodology in a unique way, studying the simulated virtual environment utilizing the online environment for conducting the study. To accomplish this, the researcher used a small and purposeful sample. While the small size is a limitation to the generalizability of the study, the findings do provide support to the value of developing leadership competencies through a simulation. Researchers are called upon to utilize the concepts used in this study to further expand the research on developing leaders for the virtual team. [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://www.proquest.com/en-US/products/dissertations/individuals.shtml.]