Knowledge transfer (KT) is regarded as an increasingly important process of knowledge management and a key element of a firmsâ€Ÿ strategic management. Nevertheless, this process of KT between the levels of the hierarchy of the organization or between the units of different organizations poses practical problems. rnIn sugar industry realization of benefits of research activity relies on the effective transfer of the research knowledge and the application of it by production units. Nevertheless this practices and related influencing factors of the KT has insufficiently been studied. Therefore this study aimed to analyze these elements in light of knowledge management. rnDrawing from the knowledge transfer, information systems, and communication literatures, an integrated theoretical model is developed that posits the influences of relationships, information technology, the nature of knowledge itself and the mechanisms for transferring it. rnThe data gathered through self-administered questionnaires from a population of 101 researchers, professional trainers, coordinators and operation managers in Ethiopian Sugar Corporation head office and Wonji-Shoa sugar factory. Of those 87 answered the questionnaire correctly. After questionnaire collected, the Partial Least Squares (PLS) approach was used to analyze the research model of this study. rnIn particular the result indicates that knowledge transfer by the research unit to operating units is positively and significantly influenced by cooperation. The quantitative data gathered in this study may not robust enough to explain the complex issue of KT. Nevertheless, the study provides important insights about the knowledge transfer process in the industrial research units. qualitative data could be used to complement the survey data in future studies.