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Complexity researchers have identified four basic assumptions underlying non‐linear dynamic systems (NDS): the assumption that change is a constant; the assumption that emergent systems are not reducible to their parts; the assumption of mutual dependence; and the assumption that complex systems behave in non‐proportional ways. In this paper I use these new assumptions as a basis for explaining why order emerges in organizations, and for uncovering a three‐stage process model of complex adaptive systems change (CASC). The insights from these NDS models are revealed through examples from two entrepreneurial firms undergoing transformative shifts in their development. These assumptions of NDS and the model of CASC may therefore be useful for understanding order creation and self‐organizing processes in work groups, project ventures, and organizations.

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