An organization’s ability to change and adapt to new circumstances, in relation to both changes in operations (i.e., what they do) and identity (i.e., who they are), is central to achieving competitiveness (Greenwood and Hinings, 1996), effectiveness (Huy, 2001), and long-term success (Ahlstrom and Bruton, 2010; Gallego, Rubalcaba and Hipp, 2013; Klarner and Raisch, 2013). There is, however, scarce understanding of the role of the founder-entrepreneur for such adaptation in small-and-medium sized enterprises. This is a shortcoming since the founder-entrepreneur can be both a catalyst and gatekeeper for necessary life-cycle related changes to take place in an efficient manner. In the present study, we recognize this and examine how and why identities of founderentrepreneurs and organizations relate to continuous organizational change.