Through investigation on farmer, company and relevant bureau of local government, an analysis was conducted on organizational evolution of flower industrial cluster through induction and statistical methods. The research indicated that the organizational scale and structure had been unceasingly evolved during the process resulting in such industrial cluster. In recent years, the industrial cluster has been challenged for its sustainable development, which then has slowed down due to the decreasing business income. The challenge not only resulted from declined growth in market demand, rising factor price and other external environmental factors, but also is relevant to organizational structure of cluster, quality of product, innovative capability and other internal factors. Therefore, in order to maintain sustainable competitive advantages, the flower industrial cluster needs to implement innovation incentive strategy and update organizational structure, production mode and quality of product.
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