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The paper assesses Knowledge Management Maturity(KMM) in the universities to determine the impact of knowledge management on performance excellence. This study was applied on Al-Azhar University and Al-Quds Open University in Gaza strip, Palestine. This paper depends on Asian productivity organization model that used to assess KMM. Second dimension which assess performance excellence was developed by the authors. The controlled sample was (610). Several statistical tools were used for data analysis and hypotheses testing, including reliability Correlation using Cronbach’s alpha, “ANOVA”, Simple Linear Regression and Step Wise Regression. The overall findings of the current study suggest that KMM is suitable for measuring performance excellence. KMM assessment shows that both universities maturity level is in level three. Findings also support the main hypothesis and it is sub- hypotheses. The most important factors effecting performance excellence are: Processes, KM leadership, People, KM Outcomes. Furthermore the current study is unique by the virtue of its nature, scope and way of implied investigation, as it is the first comparative study in the universities of Palestine explores the status of KMM using the Asian productivity Model.
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