Pedagogy using gamification has recently received much attention as a way of enhancing student learning and retention. Additionally, academic institutions are making extensive use of online resources to expand teaching beyond the traditional classroom setting. Both academic institutions and companies utilize virtual teams to accomplish remote teamwork, particularly in a post‐COVID environment. Despite the growing interest in incorporating gamification into teaching for business school courses, prior researchers have paid little attention to team‐based gamification in the online learning environment. The purpose of this study is to examine if team members’ perceived team cohesion influences their perceptions of flow. Also, we investigate the relationships among three flow dimensions: concentration, perceived control, and perceived enjoyment. We tested our research model using an enterprise resource planning simulation game involving 187 business students. The results of structural equation modeling with partial least squares analysis support all of our hypotheses.