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The research aims at analyzing the internal communication in a new product development project of Sandvik with expectation to explore possibilities of improvement. Throughout the research, internal communication seems to have a great impact on innovation and project performance. Several critical factors in building effective communication were identified as team size, superordinate goals, centralization of communication, early involvement, physical proximity, and leadership. Meetings were considered as a major and efficient method of communication within the project. Based on these issues, recommendations for improving internal communication within the project were suggested.