Summary Using matched reports from 73 team leaders and 359 of their members across 23 companies in Korea, we examined a multilevel model where group‐ and individual‐focused transformational leadership and their influence processes operate at the team and dyadic levels independently and interactively to be associated with team and member performance. Results indicated that group‐focused transformational leadership was positively associated with team performance through team member exchange (TMX), whereas individual‐focused transformational leadership positively related to team members' in‐role and extra‐role performance through leader–member exchange (LMX). TMX not only positively mediated the relationships between group‐focused transformational leadership and member performance after controlling for LMX but also positively moderated LMX–performance relationships. Moreover, the indirect effect of individual‐focused transformational leadership through LMX on member performance was contingent upon the level of TMX. Theoretical and applied implications are discussed. Copyright © 2015 John Wiley & Sons, Ltd.
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