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New product development is one of the most knowledge intensive processes in business and is itself constantly creating new knowledge. This study proposes a hypothesis test and theoretical model of the correlation among knowledge management, organizational factors and new product development performance. Surveys collected from Chinese aviation enterprises and scientific research institutions were analyzed and tested. The following results are obtained: (1) There is a positive effect on new product development performance for those companies that strongly implement knowledge management method. (2) Knowledge management method and new product development performance are affected by structure and culture factors. But IT factor is negatively related with knowledge management method. (3) Knowledge management method moderately mediates the effects of Organizational structure and culture factors on new product development performance. The managerial implication is that organizational structure and culture could better improve new product development performance in the context of knowledge management processes.