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Multifunctional teams have become commonplace in new product development (NPD) endeavors. Knowledge on the functioning of such teams, however, remains little. In this article two major principles about how these teams function are investigated, team cooperation and team integration. A theoretical discussion indicates that there is not a clear‐cut way to manage team cooperation and team integration in order to achieve high performance. The management of these principles in NPD teams is rather a delicate managerial challenge. These theoretical considerations are statistically examined then. The results show that both team cooperation and team integration are inversely U‐shaped related to NPD team performance. In managerial terms the results imply that creating the right level of team cooperation and team integration managers have to balance their actions between two extremes. The article finishes by …