This study aims to build a conceptual model in a gap of literature studies between the quality of work life and teamwork performance, with a new concept of transformative interaction capability. A model with empirical testing is presented with variables: objectives oriented team spirit, task implementation quality and team agility that encourage to improve teamwork performance. Respondents of this study were supervisors, managers, directors, and staff involved in a new product development team at the Muhammadiyah Owned Enterprises in the Special Region of Yogyakarta and Central Java. 300 questionnaires were distributed, questionnaires returned 285, and 22 cases could not be processed because the work period was less than 1 year and the questionnaire was not complete. So that the data processed is 263 samples. The analysis technique uses Structural Equation Modeling with AMOS. The results of this study indicate that the quality of work life has a significant effect on transformative interaction capability, and transformative interaction capability has a significant effect on teamwork performance. This research also shows the results that transformative interaction capability mediates the quality of work relationships and teamwork performance. The seven hypotheses proposed, and one additional hypothesis, are all accepted. So that transformative interaction capability can be implemented in improving teamwork performance which ultimately impacts on organizational performance.