Abstract: “The present study examines the effect of a teams’ knowledge management practices and team performance. Drawing on the knowledge based view which says how knowledge management practices will enable the achievement of sustainable competitive advantage, this study attempted to investigate knowledge management practices at the team level and their effect on team performance in software development companies and Business Process Outsourcing companies. A hundred teams including their team leaders and team members from selected companies in Sri Lanka responded to two questionnaires. Using the Partial Least Square – Structural Equation Modeling approach, the results of the statistical analysis revealed that knowledge management practices within teams have a significant effect on team performance. Hence, this study contributes to the knowledge based view theory.”

Keywords: Knowledge Retention (KR), Knowledge Management Practices (KMP), Team Performance (TP), Knowledge Based View (KBV) Theory, Sustainable Competitive Advantage (SCA).