Stone Group Corporation has carved out a historic role in opening up new avenues in China's high-tech industries. It is the company that first brought to the market an integrated Chinese word processor, a product that revolutionized Chinese word-processing, and it has dominated the market ever since. Stone is well known for being the largest non-governmental enterprise in China. The company's market success in new high-tech products is considered to be closely related to the organizational framework that evolved at Stone. This chapter documents the characteristics of Stone's new organizational structure and the strengths and limitations of that structure for allocating the resources and creating the incentives required for organizational learning.