The purpose of this study is to analyze the impact of innovation as the mediation variable towards the knowledge management relationship and also culture organization towards organization performance. The population in this study are employees of XYZ. The data collection in this study is conducted by using the questionnaire and then the data is analyzed with Partial Least Squares method. The results show that; (1) knowledge management has the influence on innovation; (2) The effect on the organizational culture of innovation; (3) Knowledge Management of an effect on the performance of the organization; (4) The organizational culture influence on organizational performance (5) innovation does not affect the performance of the organization, (6) the innovation did not mediate the relationship of knowledge management to organizational performance; (5) innovation does not mediate the relationship of organizational culture on organizational performance. There is an explanation obtained from the interview that describe the gap and difference perception between innovation authority and power. Thus, the innovation always depends on the individual who has willingness to make the innovation.