For information systems development project student teams, learning how to improve software development processes is an important training. Software process improvement is an outcome of a number of creative behaviours. Social cognitive theory states that the efficacy of judgment influences behaviours. This study explores the impact of three types of team knowledge: domain knowledge, methodological knowledge and implementation knowledge, as well as achievement motivation on student teams' collective creative efficacy (CCE) during information system development. This research also discusses the correlation between CCE and project performance using data from 98 student teams. Because of the difference in project characteristics, we divided the teams into "actual demand" project teams (having a real business case) and "suppositional demand" (having no real case, just an artificial or simulated case) project teams. The results show that achievement motivation positively influences CCE, either in "actual demand" teams or in "suppositional demand" teams. Domain knowledge is significantly correlated to CCE in "actual demand" teams, but methodological knowledge and implementation knowledge significantly influenced CCE in "suppositional demand" teams. CCE is not significantly related to project performance in "actual demand" teams. However, CCE is related to process performance and product performance in "suppositional demand" teams. Whilst this study explores issues in team project learning activities for students in information systems, some suggestions are made for educational designers using similar activities in other disciplines. (Contains 1 figure and 3 tables.)