A mechanism-based microscale kinetic theory for strain-induced structural changes (SCs) (that includes phase transformations (PTs) and chemical reactions (CRs)) is developed. Time is not an independent parameter in this theory; instead, plastic strain is a time-like parameter. Kinetics depends essentially on the ratio of the yield strengths of phases. Stationary and nonstationary solutions of the kinetic equations are analyzed for various cases, including SCs between two phases in an inert matrix and between three phases in silicon and germanium. A number of experimental phenomena are explained, and material parameters controlling the kinetics of strain-induced SCs are determined. This includes the possibility of intensification (or suppression) of SCs at the initial stage of straining by adding a stronger (or weaker) inert phase, zero pressure hysteresis that however has nothing to do with phase equilibrium pressure, the possibility of obtaining some phases (that cannot be obtained under hydrostatic loading) under strains, and the possibility to obtain some phases under relatively small shear, which disappear under larger shear.