ABSTRACT The transformation of higher education institutions into dynamic learning organizations is critical for fostering innovation, adaptability and long‐term sustainability. This study investigates the role of inter‐agency trust in shaping learning organizational culture within Chinese higher education, emphasizing the influence of relationship quality, organizational capability, stakeholder satisfaction, and coordination. Employing a robust quantitative methodology, data were collected from faculty, administrative staff, and management personnel across leading universities in Xi'an, China. Structural equation modelling (SEM) was utilized to analyze both direct and mediating effects. The findings reveal that while relationship quality and organizational capability do not directly influence learning organizational culture, their effects become significant when mediated by diversity experiences. In contrast, coordination and stakeholder satisfaction exert both direct and indirect effects, highlighting their central role in fostering a conducive learning environment. The study underscores the transformative power of diversity experiences in bridging institutional gaps and enhancing organizational learning. These insights provide a strategic framework for policymakers and university administrators to strengthen institutional collaboration, optimize governance structures, and cultivate inclusive learning environments. By integrating trust‐driven mechanisms with diversity‐centred strategies, this research advances the discourse on sustainable educational reforms and the global competitiveness of Chinese higher education institutions.
Azram et al. (Tue,) studied this question.