Knowledge process	Innovation opportunity	Managerial action
Socialization (Tacit −> Tacit)	Incremental improvements of processes through the sharing and reinterpretation of knowledge from one generation to the next.	Support recreation of knowledge as part of the socialization process. Create family norms for two-way sharing of knowledge.
Externalization (Tacit −> Explicit)	As part of this process knowledge from both generations are articulated and hence 1) easier to share beyond the family circle and 2) exposed to quality assurance. This can lead to both incremental and radical innovation in the wake of debunking family myth.	Guidelines for testing validity of knowledge. Make relevant knowledge available outside the family circle within the business.
Combination (Explicit −> Explicit)	Radical innovation and potentially new business activities.	Establish access to a wide range of external knowledge sources to complement internal knowledge. Manage innovation process systematically and priorities resources objectively.
Internalization (Explicit −> Tacit)	Incremental improvement of both processes and products.	Systematic analysis of best practices.