This study proposes a model based on transactive memory theory to analyze team performance. In the proposed model, team performance is influenced by hypercompetition and emotional regulation directly and indirectly via the mediation of transactive memory and knowledge sharing. According to the model, the direct effect of knowledge sharing on team performance is moderated by both hypercompetition and emotional regulation. Empirical testing of this model, using team personnel in banking, insurance, and financing firms, confirmed the applicability of the transactive memory theory among these service firms’ work teams. Managerial implications and research limitations are discussed.