Abstract: With the advent of knowledge economy, it’s important to create and utilize the knowledge effectively. However, current research on knowledge creation most was mostly based on individual and team level, focused more on antecedents of knowledge creation, its outcome based on organizational level is quite rare. Based on samples of Beijing and Guangzhou enterprises, the predicting effect of knowledge creation on the organizational performance is explored. Results reveal that besides knowledge creation has a direct and significant impact on the technological innovation, knowledge creation can also influence core competence through technological innovation, but technological innovation influence organization performance only through core competence. Technological innovation takes a partially mediating role between knowledge creation and core competence, and core competence takes a fully mediating role between technological innovation and organization performance.