We examine how various conditions affect whether and when firms pursue structural realignment by recombining business units. We find that while firms initiate structural recombination during periods of industry (revenue) growth, they reduce their recombination efforts during periods of industry turbulence (i.e., revenue volatility) and managerial turbulence (i.e., growth in top management team size). We also find evidence that firms delay realignment and bide their time for better environmental conditions of declining turbulence and industry growth. We propose that decision makers delay initiating business unit recombination until they can effectively process information and assess how structural changes will help them realign the organization to the environment.