Growing competition among higher education institutions (HEIs) explains their increasing interest in reinforcing strategies by incorporating knowledge transfer (KT) objectives into their strategic plans. However, this strategic formulation must be aligned with the implementation of performance management systems (PMSs) to properly achieve KT objectives. Thus, the aim of this paper is to examine whether aligning PMSs with KT strategic objectives improves KT performance while misalignment worsens it. To that end, PMSs are measured with respect to planning; cybernetic control; policies and procedures and reward and compensation elements. KT is specified as R&D contracts, extended patents, patents and licences. With a sample of 3812 Spanish university lecturers, we test the theoretical positive and negative effects of PMS-KT strategy alignment and misalignment on KT performance respectively. The results show not only that this alignment is effective for KT strategy implementation but also that misalignment has unintended effects on the achievement of long-term KT objectives. Therefore, lecturers' behaviour is influenced by how closely KT strategy and PMSs are aligned. The findings are useful for managers and academics to develop PMSs that effectively contribute to the achievement of universities' strategic goals.