The current article puts forward the relationship and interaction between institutional knowledge management and organizational culture at universities. Institutional knowledge of universities is one of the key factors having strategic importance, the management of which contributes to the development of institutional capacities and promotes gaining competitive advantage. Effective
management of institutional knowledge at universities is based on strong organizational culture. This article also discusses the four main types of organizational culture (clan, adhocracy, hierarchy and market cultures), among which the clan culture, has the greatest impact on the institutional knowledge management. The universities having clan culture encourage innovation and creativity, problem solving, decision making and change management, as well as apply combined traditional and strategic approaches to management.