Abstract

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.

Highlights

  • Since the early 90s knowledge management caught scholars’ interest, its importance is increasing globally, and it is witnessing rapid developments

  • The optimal model of the study according to path analysis, was the one that excluded the process of knowledge diagnoses from the suggested model

  • From an organizational culture perspective, that model was considered to be the best variable through which the system is implemented in the banks in Jordan

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Summary

Introduction

Since the early 90s knowledge management caught scholars’ interest, its importance is increasing globally, and it is witnessing rapid developments. This study aimed to implement a knowledge management system to improve banks performance by focusing on knowledge processes and perspectives, and to demonstrate knowledge importance to develop organizations business such as banks. Researchers believe that the changing-business environment that controls banking and banks processes imposes depending on a solid ground of knowledge management. This study’s subject stemmed from the advantages mentioned above of knowledge management systems in supporting Jordanian banks performance, which enhances the national economy, develops it, and facilitate daily life. The study was the first, as far as I know, to implement and find the impact of the system on commercial banks and Islamic commercial banks, which adds value to the administrative field in general and knowledge management in specific

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