<p>This study replicates Elyousfi et al. (Int J Public Sect Manage 34(5):508–52814, 2021) in a novel context by examining perceived e-leadership and team dynamics in Japanese small-and-medium sized enterprises (SMEs) during the COVID-19 pandemic. While the original study identified both constructs as drivers of virtual team performance in public-sector settings, our findings reveal a critical divergence: in crisis-driven SMEs, perceived team dynamics – encompassing collaboration, support, and cohesion – emerge as the strongest predictor of work-from-home (WFH) performance, with perceived e-leadership showing no significant direct effect. Using structural equation modeling (SEM) with data from 139 SME employees, we demonstrate that team dynamics outperform hierarchical leadership models in decentralized, resource-constrained environments. Although the chi-square statistic and RMSEA slightly exceed recommended thresholds, the strong incremental fit indices and overall results suggest that the model’s statistical validity is acceptable. These findings challenge assumptions about universal efficacy of e-leadership and underscore the importance of fostering strong team collaboration and support in remote work settings. We advocate for future research to explore shared leadership models and employ longitudinal designs to better capture the evolution of these dynamics over time, thereby enhancing evidence-based management for SMEs in a post-pandemic world.</p>