Abstract
This study aims to use the Asian knowledge model “APO” as a determinant for performance excellence in universities and identifying the most effecting factors on it. This study was applied on Al-Azhar University in Gaza strip. The result of the study showed that (APO) model is valid as a measure and there are four dimensions in the model affecting significantly more than the others (university processes, KM leadership, personnel, KM outputs). Furthermore, performance excellence produced though modernizing the means of education, curriculum development, technology and flexibility in the organizational structure. The study recommends expanding the usage of (APO) model, enhancing the role of knowledge leadership, technology, organizational flexibility, sharing culture and incentive systems that encouraging innovation.