Although cross-functional conflicts occur between marketing and research and development departments, empirical research on the inherent mechanism remains scant. This study examines the hierarchical relationship among various cross-functional conflict types. Trust moderates conflict resolution in a sample of 135 Chinese high-tech companies. Results show an inverted U-shaped relationship for cross-functional task conflict and a negative relationship for cross-functional relationships on team effectiveness and innovation performance. Trust moderates the relationship between cross-functional task conflict and team effectiveness; however, the results do not show trust’s link to the relationship between relationship conflict and team effectiveness. When trust is high, the U-shaped relationship between cross-functional task conflict and team effectiveness becomes positive. This study offers executives new guidelines for managing conflict and trust to improve high-tech firm’s innovation climate.

• Ping Sun(Shandong University)
• Xiang (Robert) Li(University of South Carolina)
• Drew Martin(University of Hawaii at Hilo) corresponding author