Drawing upon theory from transnational management and market-driven organization literature, this study uses a qualitative case-based analysis involving in-depth interviews with executives who manage telecom business in 18 international affiliates all over Asia pacific to identify and examine key drivers of knowledge transfer from international affiliates in host countries to headquarter in home country during various stages of international expansion. This study suggests a number of factors that influence knowledge transfer performance in multinational corporations (MNCs) as follows: 1) the market-driven capability of the firms, 2) the functional diversification of multinational affiliates, and 3) the individual functional orientation among top management. Another relevant factor, a “distance” in terms of culture, geography, and linguistic, is also explored from a more practical view. Implications for academics and practitioners are also addressed