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Purpose

This paper aims to focus on the diffusion process of Knowledge management systems (KMSs). Specifically, to identify the sequence of stages of the process.

Design/methodology/approach

The paper presents a six‐stage model of the KMS diffusion process. It then provides an empirical test of the sequence of steps in the KMS diffusion process in Australia. Structural equation modelling using LISREL is used as the analytical tool for the empirical test.

Findings

The results show that all the hypotheses related to the sequence of the KMS diffusion process are significant. This is an important and significant finding. It clearly demonstrates how KMS adoption and diffusion should be planned in Australian organizations.

Originality/value

The research identifies six stages of KMS diffusion based on the results from selected Australian companies: initiation, adoption, pilot implementation, organic growth, organizational implementation, and sustained use/diffusion of KMS.

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