This study examines the factors affecting the adoption and practice of knowledge management system (KMS) in Taiwan life insurance industry, using a mixed methodology approach. The research was carried out in three phases: field study, pilot survey and main survey. The main survey data were analyzed through Partial Least Squares (PLS) technique. The results indicate that the external factors affect employees’ attitudes via perceived usefulness and subjective norm in adopting and applying KMS, which would then impact the perceived performance of the organization. This study offers a comprehensive research model for future KMS studies and provides managerial implications particularly for those life insurance enterprises embarking on the adoption and practice of KMS in Taiwan or elsewhere.