Globalisation of education challenge Universitas Terbuka/UT to be able to realize its vision to be a world class university. In essence, it has to create quality and equitable education: flexible, open and online. To meet these challenges, UT is required to improve the performance of faculty/department. The key is learning culture has to build which will have a positive impact to the knowledge management. By involving 99 lectures from four faculties at UT and using SEM-PLS tools, this study found the fact that the knowledge management is influenced by organizational learning culture, knowledge management give a positive impact to department’s performance. Leadership has function to reinforce and to support creating learning environment. However organizational culture can’t influence performance. Future research can be directed to study factors that can affect building a good organizational learning culture.
