Organizations are currently facing important and unprecedented challenges in an ever dynamic, constantly changing and complex environment. Groups of individuals working across time, space and organizational boundaries with links strengthened by webs of communication technology, commonly referred to as virtual team, have become a "norm" in order to cater to the needs of global market places. Thus, it becomes essential to understand those factors that impact some of the key team related measures like efficiency, effectiveness and productivity of this evolved team setting. This paper presents a conceptual model and develops testable propositions highlighting factors that affect team performance in globally distributed setting. The research focus of this paper is on the impact of diversity, distributedness and task characteristics on team performance in distributed settings. Analysis plan and directions for future research are also discussed in the paper.