It is widely accepted that effective KM requires both infrastructural and process capabilities. However, very little research has been conducted to understand how either kind of capabilities are developed. In this paper, we focus on KM process capabilities, identify and empirically examine the important factors in that influence the development of KM process capabilities. Particularly, relying on the institutional theory and technology-task fit theory, we propose that KM process capabilities are driven by both organizational, i.e., leadership and organizational culture, and technological factors i.e., technology fit. An empirical study was then conducted with KM practitioners to validate the hypotheses. On the theoretical side, this study entangles the relationship between two KM capabilities proposed in (Gold, Malhotra, & Segars, 2001). On the practical side, the results provide valuable guidelines for developing KM process capabilities, with a balance between both managerial and technical infrastructures.