Independent colleges, as transitional form of higher education and spin off organizations in the Chinese context, are inseparable from the dependence on the resources of parent organizations. Meanwhile, independent colleges' dual role comes from considering not only the public good nature of education but also the for profit of investment returns. In view of the dual role feature and heavy dependence on external resources, this study endeavors to define the organizational capability of independent colleges and how it is formed and developed. From the perspective of the paradox lens and taken Xinhua College as research object, this study analyzes the capability building process of spin off organizations and their innovative pattern. The findings are : (1) The process of organizational capability building of independent colleges can be revealed through the dynamic interactive pattern of internal replication and internal innovation. (2) The evolutionary path of the independent colleges' organizational capability is a cyclic construction process with three stages, namely , "fr om external to internal", "capability retention" and "from internal to external". (3) Affected by environmental pressures and opportunities, independent colleges explore balances between public welfare and commercial behaviors. Meanwhile, under the joint promotion of environmental cognition and paradox balance system, independent colleges build the internal innovation capability and complete the cyclical construction of organizational capabilities. The main contributions are: (1) It explores the organizational capabilities of independent colleges in China and deepens the research on organizational capabilities of independent colleges; (2) After exploring the evolutionary process of organizational capabilities of independent college s , this study concludes propositions on the evolution of organizational capability process; (3) It explores the interaction pattern between the paradox balance system and the organization’s dual formation role of organizational capabilities. (4) It reveals the innovation pattern which promotes the innovative motivation of spin off organizations.