The aim of this paper is to explore an effective approach to consider the innovative behavior in incumbent business, both practically and theoretically. We initiated a two-stage action research project to participate in the whole process of planning, implementation, evaluation and reflection in a quality upgrade program of the researched corporation. We find that the quality performance cannot be improved by reinforcing the established quality system. Thereafter, applying the principles of complexity theory, we nurture a context to shift the prevailing mental model and bring in innovative behavior within the organization. From an intentional perspective, we apply the single and double-loop learning models to explain the distinctive implications of the two stage action research process. In addition, from the emergent perspective, we propose a recursive process model of interventions on complex adaptive system to further illuminate how these interventions bring in innovative behavior. We conclude that an organization, which can create a balance between tradition and the new (emerging) complexity paradigm, will exhibit both adaptive and innovative capacity.