This study investigates how cognitive and affective conflict affect performance and social outcomes in the new product situation. We examine the corporate, project, and personal characteristics that determine the level of inter-functional conflict between marketing and R&D. From a survey of Korean high-tech companies, we found : (1) time pressure was positively related to cognitive and affective conflict, (2) joint reward systems, interdepartmental connectedness, and years of education were negatively associated to cognitive conflict, (3) while cognitive conflict was positively related to new product creativity and NPD performance, affective conflict was negatively associated to marketing-R&D integration and perceived effectiveness of the relationship, as well as new product creativity and NPD performance.