Conceptual work on emotional contagion suggests the effect of emotional contagion from the team leader to the team members applies equally in the context of virtual teams that lack emotional cues based on physical presence, such as face-to-face interaction. Drawing on contagion theory and social network theory, we develop a model suggesting the effect of team leader emotional displays on team members’ emotional displays for positive and negative emotional displays. We suggest that the effect of team leader emotional displays depends on the team collaboration structure and team collaboration function. Using data from 999 open source projects, we test our hypotheses for positive and negative emotional displays jointly using seemingly unrelated regression. We find that the emotional contagion process applies to virtual teams. The results suggest a significant moderation effect for the team collaboration structure, unlike team collaboration function. More so, this interaction effect increases for higher levels of team collaboration structure and both, positive and negative emotional displays. The implications for research and practice show the importance of collaboration structure for the conformance and convergence of team emotions.