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The study sets out to examine the influence of§Information technology, credibility and communication§on knowledge transfer and innovation. The primary§purpose is to investigate knowledge transfer§facilitators, processes, and innovation results in§one complete model. Based on a survey of 310§employees from 20 companies both foreign invested and§local in Vietnam, this study applied the structural§equation modeling to test the research model. The§results show that IT application significantly§affects credibility and communication among§employees. The results also indicate that credibility§and communication can improve knowledge transfer. It§also finds out that knowledge transfer effectiveness§can enhance individual innovation.§The findings of this study provide the evidence that§the relationships among knowledge transfer§facilitators, processes and innovation may be a clue§regarding how companies promote knowledge transfer to§foster innovation capability of their own employees.