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The purpose of this research was to test the predictions of Team Coaching Theory (Hackman & Wageman, 2005) using 137 research and development teams in Taiwan. The results of this study partially supported Hackman and Wageman’s theory. Results of the structural equation modeling (SEM) indicated that team coaching functions had positive effects on the team performance processes of effort and skills and knowledge. In addition it was found that the team performance processes of effort and strategy had direct positive impacts on team effectiveness. Further SEM analyses indicated that effort and skills and knowledge both had direct impacts on strategy (which in turn impacted on team effectiveness).