Many companies have pursued innovation to obtain a competitive edge. Thus, educational reform focuses mainly on training creative students. This study adopted the concept of an affiliated network of projects to investigate how project embeddedness influences project team creativity. This work surveys 60 projects in a Management Information Systems Department of a University. Validity of the specific study hypotheses is tested by using moderate hierarchical regression analysis to determine how project embeddedness affects project team creativity and assess how the team innovation climate moderates the relationships between project embeddedness and project team creativity. Analytical results indicate a positive association between structural embeddedness and project team creativity, a negative relationship between positional embeddedness and project team creativity, and a positive influence of team innovation climate on the relationships between network embeddedness and project team creativity. An attempt is also made to understand the role of positional embeddedness by classifying the interactions based on the content of interactions. According to those results, positional embeddedness is positively related to project team creativity during problem–identification interaction; during solution–design interaction, positional embeddedness is negatively related to project team creativity. Results of this study explain the phenomena of divergent thinking and convergent thinking during creative development.