Purpose -The objective of this study is to discuss the critical success factors involved in implementing a knowledge management system (KMS), in order to enhance a firm's competitiveness, while keeping costs to a minimum. Design/methodology/approach -Based on field studies and a literature review, this study outlined 32 variables in the implementation of a KMS. The research targets were on members of the Taiwan Pharmaceutical Marketing and Management Association (TPMMA). Out of the 355 questionnaires sent, 98 valid questionnaires were returned, resulting in a valid return rate of 27.6 percent. Findings -After completing the statistical analysis, seven factors were determined to be critical: a benchmarking strategy and knowledge structure; the organizational culture; information technology; employee involvement and training; the leadership and the commitment of senior management; a learning environment and resource control; and evaluation of professional training and teamwork. Research limitations/implications -This paper chooses members of TPMMA as research targets; thus, to apply this study to other than pharmaceutical industries requires further research. Practical implications -Strategy and organizational culture are important in the adoption of a KMS. This study has determined that the pharmaceutical industry has paid special attention to benchmarking strategy. Adopting a KMS can be easy with a core department to maintain proper function of the system. However, companies should utilize the intangible assets available through a KMS to attain full participation from the employees to ensure the success of implementing an effective KMS. Originality/value -This paper identifies critical factors in adopting a KMS for the pharmaceutical industry. That can offer pragmatic indication for those companies intent on introducing a KMS.