This research endeavored to develop and empirically test a conceptual model examining the impact of knowledge sharing tools on students’ knowledge through the intervening role of perceived competence, relatedness, and autonomy in higher education institutions (HEIs) of Pakistan, and it examines the applicability of the concepts in HEIs of Pakistan. One repercussion of globalization is the development of knowledge economies. The makeover and advancement process of knowledge less to knowledge based economies has been apparent as the only way to avoid them from becoming dependent on knowledgeable economies. Currently, knowledge management (KM), which is the handling of information and resources, is attracting attention. Among the most discussed and debated areas in KM are knowledge creation and knowledge use. Knowledge plays a key role in revolution; knowledge is neither data nor information, it is, though, both, which leads to wisdom (T. H. Davenport & Prusak, 1998). This study was conducted with the aim to examine the effects of knowledge sharing tools (i.e. trust, motivation, technology, teacher role, and teacher enthusiasm) on students’ tacit and explicit knowledge outcomes in HEIs of Pakistan. To examine the effects of the selected predictors on students’ knowledge outcomes, a self-administered questionnaire was employed. The results were analyzed by applying different quantitative techniques. The sample size of this research was 4012 students from ten public and private HEIs in the Punjab province of Pakistan. The data were collected by using multi-stage sampling and the data were analyzed by applying regression analysis. The empirical findings of this study demonstrate that utilization of knowledge sharing tools in HEIs is a significant driver for students’ knowledge outcomes. In particular, it is probable that perceived competence, relatedness, and autonomy support knowledge outcomes through a more efficient application of knowledge sharing tools. In addition, the empirical findings illustrate that knowledge sharing tools play an important role in enhancing students’ knowledge outcomes in HEIs along with dimension of self-determination theory. This study concludes that KM should be fully integrated and it should be on the strategic agenda of HEIs in Pakistan. Thus, this study recommends that HEIs should prioritize KM practices to exploit knowledge and to explore new knowledge.