ABSTRACT
Dual restructuring divides the value-added chain of a product between Western and Eastern companies in such a way that significant improvements in competitive advantage can be achieved for both. Jagenberg Maschinenbau exemplifies successful cost-induced dual restructuring. Dual restructuring thus became a top priority: In May 1993 senior executives of Jagenberg visited the Czech Republic and Slovakia to examine potential candidates for a joint venture. The Slovakians encountered difficulties in obtaining the necessary input; thus Jagenberg had to organize weekly truck transports of finished parts from Vuma to Neuss. However, once the venture is in place, it appears that Vuma Jagenberg might profitably be used as a staging site for additional relocations in Central/Eastern Europe. The East and Central European countries provide not only a rich store of natural resources such as natural gas, oil, and coal, as well as agricultural products, but also an enormous potential workforce.
