Universities play a pivotal role in knowledge production and sustainable development, acting not only as centers of academic training but also as drivers of innovation and social change. This study examines the theoretical framework of knowledge production, sustainable university management, and sustainable development, with a focus on the Latin American context. Using bibliometric analysis with VOSviewer, 623 documents from the SCOPUS database (2020–2024) were analyzed, revealing key thematic areas that highlight how higher education institutions can integrate Sustainable Development Goals (SDGs) into their management models. They show four main clusters: sustainable development and economic effects, sustainability in higher education, education and public health, environmental management and circular economies. These clusters underline the importance of interdisciplinary collaboration and sustainable practices in universities. The findings reveal significant tensions between traditional and innovative approaches in the core functions of teaching, research, and extension, with notable challenges in the adaptation of global sustainability agendas to local contexts. This study provides insights into how universities in Latin America can leverage these contradictions as opportunities to advance their contribution to sustainable development, aligning academic excellence with social relevance. The paper concludes that universities must navigate complex internal and external demands, fostering sustainable governance models and enhancing their impact on society. Integrating SDGs into curricula, research, and extension activities, positions universities as key agents in driving social and environmental transformation; making them crucial players in the pursuit of a more sustainable future.