Purpose This study aims to explore the transmission mechanism of individual idea generation on team idea implementation and elucidate the relationships among team knowledge territoriality, team information exchange and team trust, which can better improve team knowledge sharing, decrease individual knowledge hiding or territoriality and assist the team in solving the predicament of idea implementation. Design/methodology/approach The data were collected by the paired method from 56 Chinese companies' R&D teams, which comprised 356 valid samples. Besides, structure equitation modeling and hierarchical linear modeling were used to test the hypotheses. Findings Team knowledge territoriality had a significant positive impact on individual idea generation, team information exchange and team idea implementation. Team information exchange mediated the relationship between team knowledge territoriality and team idea implementation. Moreover, team information exchange positively moderated the relationship between team knowledge territoriality and individual idea generation. Furthermore, the relationship between individual idea generation and team idea implementation was mediated by team trust. Originality/value This study augments the theoretical research of territoriality and innovation process. From the viewpoint of knowledge territoriality to describe the coexistence of knowledge sharing and knowledge hiding in the organization, this study reveals the influence mechanism of team knowledge territoriality on team innovation process. Overall, this study provides empirical support that team territoriality can weaken the adverse impact of individual territoriality on innovation to a certain extent.