Decision effectiveness depends on the type of knowledge that is generated by the decision-making process in team members. Thus, the organization, in accordance with the teams' experience and capability, ultimately achieve its desired outcome; however, previous research has not addressed the linkage between the three types of existing knowledge and decision effectiveness. Also, no prior study has researched the mediating role between different types of knowledge in decision making and product competitive advantages. We address these gaps in the current literature by specifying different types of NPD knowledge characteristics in the context of the decision-making environment. Based on the resource-based view, we model how different knowledge characteristics affect the acquisition and application of knowledge in decision making. Anchored in a source-position-performance (SPP) framework (Day and Wensley, 1988), we shed light on how the three knowledge characteristic dimensions effect knowledge management competences in decision making for a new product project. We also examine the relationship between two dimensions of NPD knowledge management competences and product competitive advantages. Therefore, NPD teams can ultimately achieve their business objectives. To test the relationships, empirical analyses are conducted using a sample of team managers who are involved in NPD projects. This study suggests that NPD managers should increase the applicability and transferability of team members' knowledge by integrating complexity of diverse and new knowledge and developing codifiability of well-documented knowledge among NPD team members. Thus, they are able to surpass major competitors in terms of pioneering advantage and superior product quality.