Complex adaptive systems (CAS) have been identified as being hard to comprehend, composed of multiple interacting components acting interdependently with overlapping functions aimed at adapting to external/environmental forces. The current theoretical model utilized the natural functions of teams, viewing teams as a complex adaptive system, to develop the structure of the theory of complex adaptive team systems (CATS). The CATS model was formulated around the components of complexity theory (interactions, nonlinearity, interdependency, heterogeneity, complex systems, emergence, self-organizing, and adaptability) to show its utility across multiple domains (the role of leadership, organizational learning, organizational change, collective cognitive structures, innovation, crossbusiness-unit collaborations). In theorizing the CATS model, a new level of analysis was implemented, the interactions between agents as a move toward emergence in complex systems. The CATS model ultimately provides a model for organizations/ institutions to drive knowledge creation and innovation while operating in today's complexity.