We explore two consequences of organizational restructuring that are unanti
cipated by managers. At the cognitive level of analysis, we propose that or
ganizational restructuring hers the unanticipated consequence of producing
cognitive order for top executives, and at the environmental level, organiz
ational restructuring has the unanticipated consequence of contributing to
long-term environmental turbulence. both feed back to promote further organ
izational restructuring, making restructuring a self-reinforcing loop. We d
erive formal propositions from this theoretical framework, discuss issues i
n testing the propositions, and specify implications for future theory buil
ding and management practice.