This literature review focusses research on Enterprise Social Media (ESM) and its use within virtual teams. The paper includes results from 38 articles outlining the existing body of knowledge and showing the steady progress in this research field. Previous literature often thematizes the external use of social media and technological aspects, but this research concentrates on the internal collaborative use, its challenges, related determinants, managerial implications and its impact on business. Existing research illustrates key factors in each of the previously mentioned subjects. However, as research should consider the entire field, a research agenda for further studies in this ESM topic is developed.