Abstract: Based on network embeddedness and dynamic capability theory, proposes a conceptual model about the mediating effect of dynamic capabilities on the relationship of multiple network embeddedness and knowledge creation performance to solve the embeddedness paradox. The cluster firms of three industrial clusters in Fujian province are chosen as the research objects in the questionnaire survey, and the structural equation model is used to verify the hypotheses．The result shows that multiple network embeddedness influence knowledge creation performance by means of dynamic capability, but the mechanisms of the two capabilities are different. Our empirical findings indicate a full mediating role of absorptive capabilities in relational embeddedness and knowledge embeddedness, and creation capabilities act as a full mediating role in structural embeddedness and knowledge embeddedness. Therefore, cluster firms should pay attention to the bidirectional dynamic adjustment of multiple network embeddedness and dynamic capabilities, in order to achieve the best allocation of resources, and promote knowledge creation performance.