Knowledge process Conversion Definition [@98667, 9–10] Relationship to family business
Socialization Tacit to tacit “the process of converting new tacit knowledge through shared experiences. Since tacit knowledge is difficult to formalize and often time- and space-specific, tacit knowledge can be acquired only through shared experience, such as spending time together or living in the same environment.” This can be expressed through each generation learning tacit skills through observation, imitation, and practice. Family businesses are a prime example of where the interaction between generations is based through shared experiences and time together.
Externalization Tacit to explicit “the process of articulating tacit knowledge into explicit knowledge. When tacit knowledge is made explicit, knowledge is crystallized, thus allowing it to be shared by others, and it becomes the basis of new knowledge.” Either generation of a family business could take tacit knowledge and convert to explicit knowledge as the basis of new knowledge, so it can be shared with others.
Combination Explicit to explicit “the process of converting explicit knowledge into more complex and systematic sets of explicit knowledge. Explicit knowledge is collected from inside or outside the organisation and then combined, edited or processed to form new knowledge.” The conversion of explicit knowledge into new explicit knowledge can be exemplified in information being collected from within a family business and used for reporting.
Internalization Explicit to tacit “the process of embodying explicit knowledge into tacit knowledge. Through internalization, explicit knowledge created is shared throughout an organisation and converted into tacit knowledge by individuals.” Either generation in a family business can create explicit knowledge that can be converted to tacit knowledge articulated through all language including specifications and manuals.