The objective of this paper is to develop a framework for an understanding of process innovation (PI) in teams with collaborative technologies (CT’s) using a grounded theory (GT) approach. The scope of this paper is limited to teams within firms where goals are clearly mandated and constraints explicitly defined. Critical team functions such as communication, coordination and awareness are facilitated by the CT. A GT approach is proposed as a means of formulating a framework of behavioral aspects of such teams in order to capture the full range of interaction issues of people and information systems. The framework that is generated as a result of this study will contribute to an understating of team use of CTs as well as clarify the strategic value of information systems as a vehicle for constant improvement.