This paper examines the effects of dynamic environment on adaptive growing path of Chinese domestic enterprises during institutional transition. We propose that discontinuous innovation is the strategic choice of adaptive growing path of Chinese domestic enterprises. Four contexts of discontinuous innovation, which are strategic renewal, business scope adjustment, strategic change of organizational structure, and foreign market expanding are identified based on a literature analysis. We draw on the track of Haier’s discontinues innovation history from 1984 to 2009 to find out the coevolution characteristics of dynamic environment, discontinuous innovation and organizational adaptation. Our findings show that: i) dynamic environment is the direct inducement to discontinuous innovation; ii) discontinuous innovation is the strategic choice of adaptive growing path of Chinese domestic enterprises, and iii) the evolution trends of which emphasize more on external resource integration, strategic flexibility, diversification and organization structure networking. The results also suggest that the longterm coevolution between firm’s strategic choice and organizational structure change enforces the development of organization adaptation.