BACKGROUND: Choosing the right communication strategy is essential for organizations in today’s business. Nowadays, all organizations are facing operational changes; therefore, internal communication is significant for all businesses. Internal communication focuses on information and knowledge sharing activities within organizations, which are led by leaders that have the responsibility to distribute information and knowledge to employees in the organization and across departments PURPOSE: The purpose of the study is to investigate the relationship between internal communication and its components and how it affects team performance. METHOD: The research was a quantitative case study where 42 out of 70 employees at Specma Seals AB answered the questionnaire. The survey was sent out by email, using surveygizmo.com in April 2014. The response rate was 60%. A meeting with Specma Seals was arranged to conduct a deeper understanding of the company situation. CONCLUSION: The conclusion of this study is that two of the hypotheses were supported and one rejected meaning that leadership and information and knowledge sharing has a positive relationship with team performance meanwhile cross-functionality didn’t.