The authors examine the role of organizational factors affecting inter
departmental interactions and their subsequent effects an product qual
ity. Results from a national study suggest that product quality is aff
ected by interdepartmental conflict and connectedness. importantly the
linkage between interdepartmental conflict and product quality appear
s to be robust across varying levels of market turbulence and technolo
gical turbulence. in contrast, interdepartmental connectedness appears
to be more important for product quality under conditions of high mar
ket and technological turbulence. The results also indicate that inter
departmental interactions are influenced by leadership characteristics
(risk aversion of top managers), reward system orientation, and organ
ization structure (centralization departmentalization, and hierarchica
l levels). Managerial implications and directions for future work are
proposed.