Abstract
The purpose of this study is to know whether knowledge management based human capital development improves Higher Educational Institutions Performance. The need of knowledge, creation of knowledge, storage of knowledge and sharing of knowledge have been used as the dimensions of knowledge management. Data is collected by using 5 points Likert scale questionnaire from 221 teachers working in Higher Educational Institutions of Pakistan. The results suggested that knowledge management based human capital development partially improves Higher Educational Institutions Performance. The study also suggests that the creation of knowledge, storage of knowledge and sharing of knowledge improve human capital while the need of knowledge has no influence on human capital. The managerial implication and limitations of this study are also discussed.