Acknowledging the increased importance of virtual teams in the context of Industry 4.0 and recently in COVID-19 pandemic, this study identifies and addresses several knowledge gaps regarding the development of an effective transaction memory system (TMS), and the influence of its components on team's knowledge sharing and creativity. To investigate these issues, we apply structural equation modeling using AMOS 21, on a sample of 477 managers, enrolled in a French Business School program. The results confirm - with one exception, the positive role of communication frequency and quality in the emergence of TMS components; only the relationship between communication frequency and specialization being non-significant. On the other hand, TMS components have a positive impact on knowledge sharing and team's creativity. Our study also unveils two counterintuitive findings, regarding the non-significant relationships between coordination and knowledge sharing, and respectively, credibility and creativity. These findings are interpreted and explained considering the specific context of virtual projects, leading to several theoretical and managerial implications regarding knowledge management and creativity in virtual teams.</p