This error occurs when you are trying to upload new joomla plugin , component , module or template . main reason this warning is displayed is because system cannot create new directories for new plugin , component , language pack , template or module you are trying to install .

Fix :
to fix this issue , perform following tasks ,
1) CHMOD /tmp , /logs folder to 777
2) make sure /templates , / components ,/modules , /administrator/components or /plugins – /plugins/editor etc are writeable i-e with 777 CHMOD permissions .
3)make sure path to /tmp folder and /logs folder is accurate in your configuration.php file
4) if you are using FTP layer make sure information entered is 100% accurate .
5) make sure your webhost or server support .zip extraction
6) make sure there isnt any conflicting file name in directory where you are uploading new file

90% chances these fixes above will solve the problem . comment below if its still unfixed and i will try best to suggest more .