Knowledge management has been gaining acceptance in education as knowledge has become a priority today to change, adapt and innovate. However, despite of requirements for constant innovation at universities, knowledge management in higher education constitutes a relatively new research area for this context. As knowledge production has become a primary concern to knowledge management practitioners in addition to the traditional focus on knowledge sharing, this paper aims to present two theoretical models around the production of students' experiential knowledge in the teaching-learning process of higher education: the teacher-centered production model and the student-centered production model. From a range of knowledge management and experiential learning theories, the paper elaborates into the nature of students' experiential knowledge and proposes further adjustments of existing second-generation knowledge management theories taking into account the structure of the teaching-learning process, the nature of students' experiential knowledge, the participants of the teaching-learning process, and their role managing this process. Despite its theoretical nature, the paper can be relevant for future studies that stress student-driven improvement and innovation at higher education institutions.