[Excerpt] The purpose of this working paper is to present some initial findings from research currently being conducted on the effect of informal structures of communication and interaction on the product development process. The general hypothesis of the study is that higher levels of communication are associated with more effective working relationships among the different functional groups working on product innovation. The first part of this paper will review previous work in the area. Part II develops the questions of the current study. Part III outlines the methods used to address the research questions. Part IV presents the results from an initial pilot study performed within one organization. The final section discusses these results in terms of their implications for the management of innovation.