Presently in the 21st century, not only the world’s economy but also information technology (IT) industry in Taiwan are knowledge-based. Facing keen competition, there is a demand and need for IT industry to produce new technology and new products. Hence, this study investigated whether knowledge creation process plays an important role on affecting the innovation capability and organizational performance on Taiwan’s IT firms. Also it discussed the two profound knowledge creation enablers. To fulfill this purpose, an integrated model was built to examine the effects. 154 questionnaires were collected from a 200 questionnaire distribution to Taiwan's IT industry practitioners, with a response rate of 77 per cent. This study applied SEM (structural equation modeling) analysis, and the results indicated that knowledge creation process indeed has a positive and significant effect on leveraging innovation capability and organizational performance. Furthermore, organizational culture and enabling condition are found to be crucial in facilitating knowledge creation process. Some implications and recommendations are made.

Presently in the 21st century, not only the world’s economy but also information technology (IT) industry in Taiwan are knowledge-based. Facing keen competition, there is a demand and need for IT industry to produce new technology and new products. Hence, this study investigated whether knowledge creation process plays an important role on affecting the innovation capability and organizational performance on Taiwan’s IT firms. Also it discussed the two profound knowledge creation enablers. To fulfill this purpose, an integrated model was built to examine the effects. 154 questionnaires were collected from a 200 questionnaire distribution to Taiwan's IT industry practitioners, with a response rate of 77 per cent. This study applied SEM (structural equation modeling) analysis, and the results indicated that knowledge creation process indeed has a positive and significant effect on leveraging innovation capability and organizational performance. Furthermore, organizational culture and enabling condition are found to be crucial in facilitating knowledge creation process. Some implications and recommendations are made.

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