This research study aims at developing a knowledge management system to enhance Jordanian Banks Performance. The authors developed the system by examining three variables: knowledge processes, knowledge perspectives, and a balanced scorecard. The research sample included all 327 bank employees (directors, general directors, deputies, assistant managers & chairpersons) working in six commercial and Islamic-commercial Jordanian banks, from which 193 completed the study questionnaire. AMOS software was used to treat and organize the collected data. Path analysis proved that the optimal study model excludes the process of knowledge diagnose from knowledge processes, and considers organizational culture perspective as the best moderating variable through which the system can be applied in Jordanian banks. There is a difference in the effect level of the knowledge management system to enhance performance in the Jordanian commercial and Islamic banks. The obtained results indicate that there is a strong relationship between information technology, knowledge management, and high business values. Banks managements were not keen to share knowledge with universities and research centers. They depended on existing knowledge, developed knowledge by experiments, or borrowed it from other financial institutions. This study confirmed that knowledge management practice contributes to increasing efficacy and experience, contributing in turn to enhancing human capital in knowledge-intensive business services in Spain. Knowledge management use in Jordan banks increased employee’s satisfaction toward using operating business and the quality of knowledge obtained. As a result, banking services and trust in banks increased. Based on the research results, it is recommended that banks managements develop, equip, and update bank systems, recruit professional employees, and seek experts and researcher’s assistance in this regard. Banks managements should adopt models that replace a diagnosis from the knowledge processes with organizational culture. Besides, management should develop banking knowledge and pay attention to other knowledge management processes.
Keywords: knowledge processes, knowledge perspectives, balanced scorecard.