A business needs to constantly innovate and reinforce the competitiveness for the survival development and sustainable management. Focus on new product development has become the key factor in modern manufacturers maintaining the competitiveness. The process and the results depend on the effective application and management of organizational knowledge that it is necessary to reinforce the capabilities in order to promote the new product development performance.With random sampling, the employees and the managers in top ten businesses of 1,000 Chinese industrial businesses are distributed 1,000 copies of questionnaire. Total 568 effective copies are retrieved, with the retrieval rate 57%. The results show 1. the significantly positive correlation between knowledge acquisition capabilities in knowledge management capabilities and new product development performance, 2. the remarkably positive correlation between knowledge transformation and application capabilities in knowledge management capabilities and new product development performance, 3. the notably positive correlation between knowledge protection capabilities in knowledge management capabilities and new product development performance, and 4. the signifi- cant moderating effects of product innovation type on the correlation between knowledge management capabilities and new product development performance. The research results are expected to provide essential contributions and suggestions for the knowledge management capabilities and the new product development of Chinese businesses.
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