This study investigates the relationship between team empowerment and virtual team performance, and the moderating role of the extent of face-to-face interaction. Using data from 35 sales and service virtual teams in a high-technology organization, the research finds that team empowerment is positively related to two independent assessments of virtual team performance—process improvement and customer satisfaction. Furthermore, the number of face-to-face meetings moderates the relationship between team empowerment and process improvement: team empowerment is a stronger predictor for teams that meet face-to-face less frequently. Virtual teams are defined as groups of employees with unique skills, situated in distant locations, whose members must collaborate using technology across space and time to accomplish important organizational tasks. While virtual teams play an important role in industry worldwide, most of the knowledge about them derives from practitioner articles, popular books, case studies, and theoretical work. Recent empirical investigations have also been conducted, but they often use students performing artificial tasks with unrealistic time limits. Previous research has shown that various team types have different performance drivers. For example, while autonomy has been linked to performance in permanent work teams, this is not the case for project teams. Therefore, it would be unwise to assume that factors influencing colocated team effectiveness are valid for virtual teams. Previous research has demonstrated a positive relationship between team empowerment and colocated team performance, but little attention has been paid to virtual team empowerment. Thus, the first objective of this study was to determine whether or not team empowerment is related to virtual team performance. The second objective was to examine the possible moderating effect of the extent of face-to-face interaction on the team empowerment-team performance relationship. The study found that team empowerment is positively related to virtual team process improvement and customer satisfaction. However, the strength of the relationship between team empowerment and virtual team performance may depend on the degree to which team members experience face-to-face interaction. The results suggest that team empowerment is a stronger predictor of process improvement for teams that meet face-to-face less frequently. This finding supports the idea that the extent of face-to-face interaction is an important contingency variable for virtual team performance. The study also found that team empowerment is positively related to customer satisfaction. However, the relationship between team empowerment and customer satisfaction was not significant when considering the number of face-to-face meetings. The findings suggest that team empowerment is more important for virtual teams that meet face-to-face less frequently. This is because virtual teams that meet face-to-face less frequently are more likely to rely on intrinsic motivation, which is rooted in assessments of a team's set of tasks, responsibilities, and capabilities. The study concludes that team empowerment is a critical predictor of virtual team performance. However, the strength of the relationship between team empowerment and virtual team performance may depend on the degree to which team members experience face-to-face interaction. The findings suggest that team empowerment is more important for virtual teams that meet face-to-face less frequently. This is because virtual teams that meet face-to-face less frequently are more likely toThis study investigates the relationship between team empowerment and virtual team performance, and the moderating role of the extent of face-to-face interaction. Using data from 35 sales and service virtual teams in a high-technology organization, the research finds that team empowerment is positively related to two independent assessments of virtual team performance—process improvement and customer satisfaction. Furthermore, the number of face-to-face meetings moderates the relationship between team empowerment and process improvement: team empowerment is a stronger predictor for teams that meet face-to-face less frequently. Virtual teams are defined as groups of employees with unique skills, situated in distant locations, whose members must collaborate using technology across space and time to accomplish important organizational tasks. While virtual teams play an important role in industry worldwide, most of the knowledge about them derives from practitioner articles, popular books, case studies, and theoretical work. Recent empirical investigations have also been conducted, but they often use students performing artificial tasks with unrealistic time limits. Previous research has shown that various team types have different performance drivers. For example, while autonomy has been linked to performance in permanent work teams, this is not the case for project teams. Therefore, it would be unwise to assume that factors influencing colocated team effectiveness are valid for virtual teams. Previous research has demonstrated a positive relationship between team empowerment and colocated team performance, but little attention has been paid to virtual team empowerment. Thus, the first objective of this study was to determine whether or not team empowerment is related to virtual team performance. The second objective was to examine the possible moderating effect of the extent of face-to-face interaction on the team empowerment-team performance relationship. The study found that team empowerment is positively related to virtual team process improvement and customer satisfaction. However, the strength of the relationship between team empowerment and virtual team performance may depend on the degree to which team members experience face-to-face interaction. The results suggest that team empowerment is a stronger predictor of process improvement for teams that meet face-to-face less frequently. This finding supports the idea that the extent of face-to-face interaction is an important contingency variable for virtual team performance. The study also found that team empowerment is positively related to customer satisfaction. However, the relationship between team empowerment and customer satisfaction was not significant when considering the number of face-to-face meetings. The findings suggest that team empowerment is more important for virtual teams that meet face-to-face less frequently. This is because virtual teams that meet face-to-face less frequently are more likely to rely on intrinsic motivation, which is rooted in assessments of a team's set of tasks, responsibilities, and capabilities. The study concludes that team empowerment is a critical predictor of virtual team performance. However, the strength of the relationship between team empowerment and virtual team performance may depend on the degree to which team members experience face-to-face interaction. The findings suggest that team empowerment is more important for virtual teams that meet face-to-face less frequently. This is because virtual teams that meet face-to-face less frequently are more likely to