In the era of information technologies, all organizations have identified the significance of knowledge management. The expansion of information technology (IT) and particularly the use of web technology have allowed the establishment of networks which enable vast amount of information to be transferred around the globe. Hence, the new internet economy requires organizations to seek opportunities in e-business and expand their ability of managing knowledge. Therefore, knowledge management systems (KMS) have been developed in order to support the main processes of knowledge management; knowledge creation and exchange. Knowledge management in a strategic, innovative, and operational level of decision making aims to develop awareness of the interactive role of technology and science towards business success. Furthermore, knowledge management strategies aim to the development of flexible organizational structures that encourage entrepreneurial creativity, structural flexibility, and managerial change. Managing business processes in higher education institutions appears similar to contemporary organizations and therefore, practices of knowledge management and information technology equally influence this industry. In the present study, the determining parameters of the role of information technology and knowledge management in higher education are presented in a literature overview. The structure of this paper aims to assist the reader in understanding deeply the issues of knowledge management through the use of information technology in higher education by providing a holistic view on the aforementioned concepts.