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Purpose

This research investigated the influence of the dimensions of the SECI theory, LMX theory and a newly developed teacher–student knowledge exchanges (TSKE) on preparedness of students for the workplace.

Design/methodology/approach

Based on a sample size of 214 business education students drawn from six programmes, structural equation modelling using AMOS was adopted to show relationships between dimensions of SECI, LMX and TSKE.

Findings

The statistical analysis revealed that dimensions of the SECI theory, especially socialization and externalization; dimensions of the LMX theory, especially professional respect; and dimensions of the newly developed TSKE perspective, especially the SECI-dominated knowledge exchange were significant influencers of students' workplace preparedness.

Originality/value

Existing literature that focussed on the knowledge management theme in education industry scarcely examined the processes that are critical to knowledge creation and exchange in HEIs. Therefore, the present study adopts a synthesis of SECI and LMX theories to explain how knowledge creation can occur in HEIs and prepare students for the workplace.

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