There are two purposes of this study: 1. to examine the legitimacy-gaining model (the relationship between legitimation strategies and legitimacy) in the context of the hospital industry; 2. to explore the influence of the legitimacy-gaining model on the process through which knowledge is created within the hospital industry. This paper proposes a legitimacy-gaining model as the determinant of hospitals' knowledge-creation activities. We further suggest managerial and theoretical implications at the end of this paper.