We use qualitative field study as the research method and use structured interview techniques to collect relevant data. In the next several sections we first present relevant background literature on KMS and the adoption/diffusion process. The research method is presented next which describes the process of data collection via interview and data analysis via a combination of inductive and deductive approaches of content analysis ([8]). Results of the study are then presented in detail, in the form of factors and variables of KMS diffusion, and a comprehensive adoption/diffusion model of KMS as obtained from the field study. Finally, conclusions and future directions are presented.