Building on social identity theory, the paper sheds new light on knowledge creation and performance within teams by enhancing our understanding of the role played by shared skill-based identity on knowledge creation and team performance. Besides addressing team coordination issues, this study helps bridge the gap between shared skill-based knowledge and knowledge creation as well as team performance. Based on two field studies, the authors found that (1) a shared skill-based identity leads to higher behavioral integration; (2) having skill-based knowledge enhances shared skill-based identity; (3) behavioral integration mediates the shared skill-based identity–team performance relationship. Overall, our findings demonstrate that shared skill-based identity plays a crucial role in team performance and knowledge creation by enhancing behavioral integration. However, although shared skill-based knowledge positively impacts shared skill-based identity, it has no direct effect on knowledge creation and team performance. The authors hence demonstrate that the factors influencing team performance are complex and individuals need to feel integrated in teams to create knowledge. Furthermore, the study provides empirical evidence that may advance the study of team performance and inform managers on how to form effective teams. For instance, the authors suggest that, when forming teams, managers should consider how each potential member defines their identity.