Preparing business master’s students for leadership in fast-changing, technology-driven industries requires more than theoretical knowledge and traditional teaching approaches. Developing behavioural competencies including collaborative decision-making, ethical reasoning and adaptive leadership under uncertainty and complexity demands authenticity through experiential learning. This case study from Westminster Business School explores how immersive virtual reality (IVR) was used to enhance such competency development within two business master’s programmes and a five-day Executive Business course.

The initiative used realistic IVR scenarios simulating real-world business dilemmas: one focused on sustainable leadership in the context of global south tourism development, and the other on ethical decision-making and communication. By immersing students in complex environments, IVR required them to make decisions, observe the consequences of their actions, and reflect on outcomes. This approach moved beyond traditional teaching to develop skills such as leadership judgement, team collaboration, and empathy.

Implementation followed a phased approach: faculty training in IVR pedagogy, pilot delivery with integrated reflection activities, and systematic evaluation. The pilot was delivered across two master’s cohorts and one executive group, combining virtual immersion with structured pre- and post-session reflection activities. These included reflective journals, peer discussions, and facilitated debriefings connecting virtual experiences to leadership theory and group dynamics principles.

Preliminary feedback showed strong student engagement. Participants reported that the immersive scenarios enabled them to experience leadership dilemmas from multiple perspectives, develop greater empathy for stakeholders, and apply critical thinking in a safe, risk-free environment. Learners reflected positively on how IVR enabled them to practise decision-making in uncertain situations and gain deeper insights into group interactions and their personal contributions within a team.

This study highlights IVR’s potential as a pedagogical tool for developing critical leadership behaviours in business master’s and executive education. By providing realistic, experiential learning opportunities, IVR supports the development of decision-making, collaboration, and reflective practice - skills essential for navigating complex global business environments.

Keywords: Virtual reality, experiential learning, management education, leadership development, behavioural competencies, immersive learning, business simulation.