This theoretical paper investigates the relationships between two major intrafirm knowledge-related processes: knowledge creation and knowledge sharing, and contributes to filling an important gap in the literature. On the one hand there is a special attention to knowledge sharing with strong emphasis on cognitive, structural, motivational and cultural barriers as well as on management tools and parameters of organizational context that help to overcome them. On the other hand there is a separate interest in innovations and creativity as well as in managerial practices and conditions that benefit new knowledge creation. It seems that there is an underlying assumption that everything that benefits effective knowledge sharing should benefit effective knowledge creation and vice versa. Our main questions are: "where and why knowledge creation and knowledge transfer contradict?" We point that there are factors that can have discrepant consequences: some conditions of knowledge creation may produce barriers for knowledge sharing and knowledge sharing context can inhibit creativity. We start with a brief definition of central concepts to avoid contradictions routed in terminology rather than in processes. Then we draw three major dilemmas of knowledge management: diversity vs. similarity; autonomy vs. hierarchy; fluctuation vs. stability. Afterwards we operationalize these dilemmas through structural and cultural factors of organizational context and management tools. On the one hand, clear division of functions and powers, cooperation, similarity in expertise and cultural norms, strong corporate culture intensify knowledge transfer. On the other hand, decentralized structures, overlapping, competition, diversity, strong subcultures are more challenging for new knowledge creation. Finally we suggest some important implications for strategic management. The paper will be interesting both for knowledge management academicians and practitioners as far as it addresses an important and neglected question of balancing contradictions of knowledge creation and knowledge transfer processes.