This　paper　examines　how　the　simultaneous　application　of　knowledge　sharing　and　knowledge　protection　(the　ambidexterity　dimension)　impacts　new　product　development.　The　study　explores　the　impacts　of　two　fundamental　control　mechanisms　(trust　and　formal　contracts)　on　the　ambidexterity　dimension　in　strategic　alliances.　A　survey　of　302　Chinese　firms　indicates　that　ambidexterity　of　knowledge　sharing　and　knowledge　protection　enhances　new　product　development.　The　results　also　show　that　trust　has　an　inverted　U-shaped　relationship　with　the　ambidexterity　dimension;　that　formal　contracts　are　damaging　to　the　ambidexterity　dimension;　and　that　the　interaction　between　trust　and　formal　contracts　adversely　affects　ambidexterity.　This　paper　thus　highlights　the　positive　role　played　by　moderate　social　control　in　maintaining　ambidexterity.