Abstract This study examines team performance as a moderator of the relationship between decision influence and outcomes relevant to team effectiveness in hierarchical teams with distributed ex pertise. In this type of team staff members have unique roles and make recommendations to the team leader, who ultimately makes the team's final decisions. It is suggested that the positive rela tionship between decision influence and favorable outcomes (e.g., satisfaction) consistently described in the literature is dependent on team performance in this type of team. Specifically, team effec tiveness outcomes are proposed to be consistently more favorable in higher performing than in lower performing teams. Decision influence is proposed to relate positively to member satisfaction with the leader, willingness to return, and self-efficacy and to relate negatively to withdrawal in higher performing teams. The opposite pattern of relationships is expected in lower performing teams. A laboratory study was conducted with 228 undergradu ates performing a computer task as subordinates in 76 four-person teams with a confederate leader. The results generally support the hypotheses and illustrate a dilemma for leaders attempting to manage team effectiveness.