This study develops a model in which transformational leadership affects team coordination and performance through the conflict management approaches adopted by team members. Data were collected from three different sources in a lagged design from 108 teams in a large enterprise in China. Results support the reasoning that transformational leadership promotes team coordination and thereby team performance by encouraging teams to adopt a cooperative, as opposed to competitive, approach to conflict management. These results suggest that transformational leadership may help team members manage conflicts for their mutual benefit. This is an important mechanism through which transformational leadership enhances team coordination and, in turn, achieves higher team performance.