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Project teams are rapidly becoming the primary mechanisms for innovation and change in modern organizations. As such, they are designed to capitalize on leadership and integrated cross-functional teamwork and to negate subordination and individual gamesmanship. Unfortunately, research on cross-functional project teams is scarce and largely atheoretical. The increasing use of these project teams by modern organizations, however, calls for theory development in this area. In the present paper, self-management and team-making models are applied to cross-functional project designs to develop a theoretical framework for the investigation of teamwork effectiveness for integrated cross-functional project teams. Future issues for theory development and research methodology are presented.