Previous research has pointed to the importance of transformational leadership in facilitating employees' creative outcomes. However, the mechanism by which transformational leadership cultivates employees' creative problem‐solving capacity is not well understood. Drawing on theories of leadership, information processing and creativity, we proposed and tested a model in which psychological safety and reflexivity mediate the effect of transformational leadership and creative problem‐solving capacity. The results of survey data collected at three points in time indicate that transformational leadership facilitates the development of employees' creative problem‐solving capacity by shaping a climate of psychological safety conducive to reflexivity processes. However, the findings also indicate that psychological safety is related both directly and indirectly, through reflexivity, to employees' creative problem‐solving capacity. This study sheds further light on the ways in which transformational leaders help to develop and cultivate employees' capacity for creative problem‐solving.

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We study, longitudinally and ethnographically, the construction of legitimacy and identity during the life cycle of an entrepreneurial Internet firm, from inception to death. We utilize organizational scripts to examine how social actors enact identity and legitimacy, maintaining that different scripts, both contested and consent-oriented, become the source of action for acquiring legitimacy and creating organizational identity. We show that scripts enable entrepreneurs and other social actors to invoke a set of interactions within and outside the organization. Scripts construct values and interests, form social bonding and consented actions, and eventually shape and reshape the individual and institutional contexts of identity and legitimacy. We found that the strategic action of organizational members in pursuing and enacting their preferred scripts depends on their position and role in the organization. We observed that the institutionalization of simultaneously competing scripts created a path-dependent process leading to organizational conflict and eventual failure.

 The paper examines effects of executives' orientations on crisis management awareness and practices, drawing on the simplicity and paradox management theories. It is suggested that a focus on single-sided management constitutes an antecedent of crisis proneness. Employing a set of key corporate domains and based on a holistic organizational approach, the study aims at assessing the extent to which companies are crisis prone or prepared. In a sample of 82 Istaeli business and not-for-profit organizations it was found that human resource management, strategy, structure, and unlearning factors significantly predicted crisis preparedness. These results suggest that unlearning, despite a mere allusion to this correlate in the simplicity and paradox management theories, correlates better with crisis preparedness. By contrast, traditional strategy-related and structural effects were marginally related to crisis management policies. Implications and suggestions for further research are proposed.