Abstract The purpose of this study is to examine structural relationships among the capabilities, processes, and performance of knowledge management, and suggest strategic directions for the successful implementation of knowledge management. To serve this purpose, the authors conducted an extensive survey of 68 knowledge management‐adopting Korean firms in diverse industries and collected 215 questionnaires. Analyzing hypothesized structural relationships with the data collected, they found that there exists statistically significant relationships among knowledge management capabilities, processes, and performance. The empirical results of this study also support the well‐known strategic hypothesis of the balanced scorecard (BSC). © 2007 Wiley Periodicals, Inc. Hum Factors Man 17: 21–41, 2007.
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