A dynamical coupled-channel formalism for processes πN → KY and γN → KY is presented which provides a comprehensive investigation of recent data on the γp → K + Λ reaction. The nonresonant interactions within the subspace KY ⊕ πN are derived from effective Lagrangians, using a unitary transformation method. The calculations of photoproduction amplitudes are simplified by casting the coupled-channel equations into a form such that the empirical γN → πN amplitudes are input and only the parameters associated with the KY channel are determined by performing χ 2 -fits to all of the available data for π − p → K • Λ, K • Σ • and γp → K + Λ. Good agreement between our models and those data are obtained. In the fits to πN → KY channels, most of the parameters are constrained within ±20% of the values given by the Particle Data Group and/or quark model predictions, while for γp → K + Λ parameters, ranges compatible with broken SU (6)⊗ O(3) symmetry are imposed. The main reaction mechanisms in K + Λ photoproduction are singled out and issues related to newly suggested resonances S 11 , P 13 , and D 13 are studied. Results illustrating the importance of using a coupled-channel treatment are reported. Meson cloud effects on the γN → N * transitions are also discussed.