The study explores the relationship between knowledge transfer and knowledge transformation in managing knowledge capital. It distinguishes between the two practices and identifies four forms of connection and relativity between them. By delving into knowledge theory, the importance of these practices becomes clear, leading to new research directions. To enhance knowledge capital value, it is crucial to actively involve knowledge holders, adopt flexible strategies, view business processes from a knowledge perspective, and redefine knowledge activities. Analyzing knowledge transfer and transformation is vital for effective knowledge management strategies.