Teamwork pedagogy has received considerable attention across a wide range of academic literature. Yet employers continue to argue that universities need to do more to better prepare graduates to work in team-based environments. Grounded in the social constructivist paradigm, this article uses a two-phase systematic literature review methodology to explore the conditions and influences affording or constraining teamwork pedagogy. A complementary thematic analysis of the articles revealed two broad themes: pedagogy and transaction costs. In almost all 57 articles, a range of factors influencing teamwork pedagogy were elaborated. Temporal, fiscal, and human resource transaction costs were identified as constraints in the application of teamwork pedagogy. An overlap of educator, student, and institutional factors are discussed as contributing to the transaction costs of implementing process-oriented teamwork pedagogy. However, the interdependent interactions among educators and students, within and across institutions, remained largely underexplored and are presented as part of a future research agenda.