This research aims to examine the process of how new venture execute institutional entrepreneurship within transition economies. We adopt Ting Hsin international group in China for subject of the study, and apply qualitative research approach, and use procedure of grounded theory study, proceeding content analysis and theories construction. Thus, the paper combined with dynamic capabilities and institutional entrepreneurship views, we develop an integrative framework, comprising two dimensions- the legitimacy and institutional hole within the field-to shed light on how new venture draws on dynamic capabilities in institutional change process, and construct the model of dynamic capabilities in different contexts. Finally, based on our preliminary finding, we offer practical suggestions for firms in China.