Our findings support the opposing effects of challenge and hindrance team stressors in predicting innovation team performance through the two differential mechanisms. Specifically, for team efficiency, both team stressors come with the cost of team task conflict (i.e., the informationbased mechanism). However, whereas challenge team stressors enhance collective team identification (i.e., the identitybased mechanism), hindrance team stressors undermine collective team identification, thereby aggravating their already negative effect on team efficiency. In terms of team creativity, our results suggest that both types of team stressors exert their indirect effects solely via the identitybased mechanism. Implications for research and practice are discussed