Knowledge Management Adoption and Diffusion Using Structural Equation Modeling

Knowledge management facilitates the firms and employees to deliver better products and services and hence achieve competitive advantages and profits. The issues of knowledge management have drawn much attention form industry and academia. However, few reports have been found available investigating how knowledge management is adopted and diffused in organizations. This paper adopts structural equation modeling to investigate employees’ cognitions pertaining to knowledge management and their impacts on knowledge management activities based on Innovation Diffusion and Technology Acceptance Model with empirical data collected among the life insurance enterprises in Taiwan. The results indicate that perceived usefulness and subjective norm significantly influence the employees’ attitudes toward knowledge management, and the attitudinal factor significantly affects knowledge management practice. The findings assist organizations to recognize the value and associated obstacles of knowledge management. This paper also presents the instrument and comprehensive model which provides directions for future research. JEL: D83, M10