New product development (NPD) projects require efficient strategies for reducing time to market and responding faster and better to the customer needs. While these strategies were mostly technology driven at the early stages, nowadays firms are adopting knowledge management systems (KMS) to enhance new customer knowledge creation and NPD performance. Despite their potential benefits, there is a variance in the extent of efforts that firms deploy for achieving NPD performance. This is because not all the firms can meet the KMS requirements to support the customer knowledge creation process. In this study, the authors develop a research model that identifies (1) the impact of KMS factors on customer knowledge creation process and NPD performance, (2) the elements that interconnects KMS factors, customer knowledge creation process, and NPD performance (3) the outcomes that are generated by this approach.