Creativity and knowledge management are both important competences that university students need to strive to develop. This study therefore developed and evaluated an instructional program for improving university students’ creativity based on a blended knowledge-management (KM) model that integrates e-learning and three core processes of KM: knowledge sharing, knowledge internalization, and knowledge creation. Moreover, this study investigated the underlying mechanisms that achieve the effectiveness of this model. A 17-week instructional program was conducted. The findings from both quantitative and qualitative analyses suggest the following. The blended KM model is effective in improving knowledge, dispositions, and abilities of creativity. The online sharing and evaluation of creative products, learning communities and discussions, and the practice of creativity strategies have substantial effects on all three aspects of creativity. The observation and peer evaluation of group assignments and creativity-related feedback enhance the learning of knowledge and dispositions. Finally, the creation of products and scaffolding of a teacher are critical to skill improvement.