Transferring knowledge from one subsidiary to another subsidiary increases the speed,rnefficiency, and quality of learning of an organization. Transferring and re-using informationrnfrom previously learned source can help a company to reduce the cost of learning for a newrntarget task (Chin, 2013). Inter-subsidiary relationship, the degree of involvement of thernsubsidiary in the company network and the internal competitiveness within and across unitsrninfluences knowledge transfer. A subsidiary relationship is made of interactions formed withrnexternal partners; however, each unit is unique and is embedded in its own local context, andrnintegrated in the MNC network (Lee & Wu, 2010). The study intended to investigaterneffectiveness of knowledge transfer in multinational companies. It was conducted in EastrnAfrica Bottling Share Company (EABC) and Beverage George Industry (BGI) companiesrnwhich are Multinational Companies in Ethiopia. The researcher used descriptive researchrndesign and mixed research approach to investigate the study. Among 143 target population ofrnthe study (not including the physical labors of the companies), 4 managers and 103 workersrnwere taken as a sample. Participants of the study were selected using judgmental andrnstratified sampling techniques (by using top mgt, middle level mgt and lower-level mgt as arnstrata) to select managers and employees of the two selected companies respectively. Bothrnprimary and secondary data was collected through data gathering instruments of surveyrnquestionnaires, semi-structured interview, direct observation and document analysis. Then,rnthe data gathered in different sources was analyzed and interpreted in descriptive mannerrnusing SPSS. The finding revealed that an adoption and deployment of effective knowledgerntransfer is very essential; however, a company cannot be successful without a robustrnknowledge transfer especially when deployed in an international dimension wherernsubsidiaries and Head Quarter constantly interacts each other. Even though, thesernCompanies attempted to understand the phenomenon of effective knowledge transfer and arnnumber of mechanisms have been proposed and described, none of them are fully adaptablernto the context of these Companies. The companies faced lack of specificity to this particularrnfield of practice. Hence, there is a need for a strong communication system to maintain goodrninformation flow to bring effective knowledge transfer to be competitive firms.