Abstract:Consider the substance of business growth is due to enterprises different needs in various life cycle, thus its willingness to innovate and the urgency of knowledge management are also different, further the extent of its impact on performance are more differences. Knowledge management is divided into knowledge sharing and knowledge creation, service innovation is divided into concept innovation, technology innovation, organizational innovation and market innovation. The theoretical model of assumption is established by these, and select 419 samples for further evidence. Structural equation analysis shows that in less than 10 years enterprises, knowledge sharing has no significant positive impact on technology innovation, knowledge creation has no significant positive impact on organizational innovation and concept innovation has no significant positive impact on business performance. In the enterprises which life is more than 10 years, knowledge sharing has no significant positive impact on market innovation and others have significant positive impact. Overall, service innovation plays an intermediary role between knowledge management and performance.