Over the past decades, IT industry has been one of the most successful industries in Taiwan. The purpose of this study is to understand how firms in information technology (IT) industries adapt to the changing environment based upon multiple organizational theories. The computer peripheral industry was chosen by using in-depth interviews of the 8 selected companies and one experienced professional, as well as focus group techniques of 11 experienced managers in the peripheral industry. The first-hand and secondary data were analyzed via hermeneutic method. The results showed that there are six stages: pre-infancy stage, infancy stage, rapid growth stage, first transformation stage, regenerating stage, second transformation stage, change and diversification became essential. Different organizational theories and strategic thinking are applied to different stages. Finally, the study has given some propositions to future empirical studies.