Abstract
The paper proposes a new venture growth model to examine the co-evolution between opportunity recognition, resource deployment and organizational development along with three development stages. Using Phison Electronics Corp., a fast-growing new venture as a case study, the paper analyzes the growth strategies in the three stages (incubation, start-up and IPO). The results reveal that the model works well in the case. In the incubation phase, the new venture works in an informal form and has little resource to exploit a new opportunity. In the start-up phase, the strategic partnership and functional organization building are helpful to discover a new market and product. In the IPO phase, as the resource grows, the new venture develops towards the vertical integration and conglomeration. The paper concludes that the adaptive capabilities along different stages are critical to manage the fast-growing new venture