It is useful to examine our conceptual model in the context of a prominent heuristic model of team effectiveness. In addition to the external environment, Cohen and Bailey (1997) considered four important categories of team concepts in their model: (1) team design, composition, and context, including leadership; (2) team processes; (3) group psychosocial traits (more appropriately delineated as “emergent states” by Marks and colleagues [2001]); and (4) team effectiveness. According to the Marks et al. model, leadership as a team context variable affects team processes as well as emergent states, which, in turn, affect performance. Thus, by considering knowledge sharing as a team process and team efficacy as an emergent state in our conceptual model, we considered two important intermediate categories that may aid in the understanding of how leadership affects performance. We are not aware of other studies, especially of management teams, that have examined both categories of concepts simultaneously while examining the empowering leadership performance linkages. Accordingly, in the following sections, we develop hypotheses for the mediating role of knowledge sharing and team efficacy in the empowering leadership–team performance relationship.