We contribute to the growing evidence of the positive effect of use of online peer feedback tools on students' teamwork skills development. We do so by exploring individual and contextual factors underlying satisfaction with using a peer feedback system alongside team projects. Employing path analytical framework and bootstrap methods, we analysed data from an international sample of 100 project teams in management studies. Drawing on procedural justice theory, we theorised and found support that students' uncertainty avoidance orientation and virtuality in collaboration were positively related to their satisfaction with use of a peer feedback system. Such satisfaction in turn allowed them to be more effective team members. Our findings provide evidence for higher education institutions and instructors considering the adoption of online peer feedback systems alongside teamwork in their curricula. Specifically, peer feedback appears to be effective in the development of teamwork skills and students appreciate the opportunity to provide feedback to their peers in a structured and dedicated environment. Our findings are timely and of important practical significance as educational institutions increasingly rely on the use of computer-mediated technology during the COVID-19 pandemic.