We develop a conceptual framework that considers new firm creation as outcomes of entrepreneurial actions in pursuit of technology opportunities and socio-political legitimacy. This framework extends existing organizational creation research from either the individualistic logics of innovation or the particular constraints of context to a dynamic, interactive, multi-level analysis which allows simultaneously for institution and for agency. To explain our framework, we analyze the emergence of Taiwan’s information technology firms from 1978~2004 as a distinct new form of organizations in Taiwan’s society and world markets. Implications for organizational emergence research, as well as innovation and institutional theories, are discussed.