The business school and the bottom line

This page intentionally left blank The Business School and the Bottom Line In recent decades business schools have become important components of higher education throughout the world Surprisingly, however, they have been the subject of little serious study from a critical perspective This book provides a sober and evidence-based corrective, charting the history and character of business schools in the light of current debates about the role of universities and the evolution of advanced economies Previous commentators have viewed business schools as falling between two stools: lacking in academic rigour yet simultaneously derided by the corporate world as broadly irrelevant Over-concern with criticism risks ignoring the benefits of reform, however What business schools need is reconfiguration based on new relationships with academia and business Such change would deliver institutions that are truly fit for purpose, allowing them to become key players in the twentyfirst century’s emergent knowledge societies This timely critique should be read by academics and policy-makers concerned with the present state and future development of business education k e n s t a r k ey is Professor of Management and Organisational Learning and head of the Strategy Division at Nottingham University Business School He is a former chair of the British Academy of Management Research Committee and a fellow of the Sunningdale Institute of the National School of Government He is the author of ten books, including How Organisations Learn (2004) n i c k t i r at s o o is currently chair of a regeneration charity in East London He was previously Visiting Research Fellow with the Business History Unit at the London School of Economics and Political Science, and Senior Research Fellow at Nottingham University Business School He has published widely in the fields of political history, business history and planning history ‘Business schools play a key role in higher education and in the economic institutions that drive modern societies Yet little systematic scholarship has been devoted to understanding and improving them Starkey and Tiratsoo fill this gap admirably They trace business schools’ evolution globally; identify the diverse demands facing them today; describe their approaches to teaching and research; and provide reasonable prescriptions for their future success This book is essential reading for all of us – administrators, faculty, students and corporate leaders alike – who want (and need) business schools to thrive.’ Thomas G Cummings, Professor and Chair, Department of Management and Organization, Marshall School of Business, University of Southern California ‘This is an important book How academic institutions are managed so as to create strong, positive societal values is key – and this is what the book is all about A must-read!’ Peter Lorange, President IMD and the Nestlé Professor ‘This book provides critical and valuable insights into the understanding of the challenges business schools are facing in the current world as a result of globalisation trends This thoughtful and constructive analysis will contribute to improve their leadership and governance – a top priority in making a positive impact not only in management education worldwide but also in society as a whole.’ Fernando Fragueiro, Dean, IAE Business School, Austral University, Argentina ‘Increasingly influential – and increasingly criticised – there is no better gathering of facts about what’s going in business schools than this work from two experienced authors who have read, probed and interviewed widely Especially fine are their analyses of the changing relationship between town and gown; chapter is a jewel Their no-holds-barred remarks about the weaknesses of today’s business school strategies, and the possibilities for tomorrow’s, are simply the best available in this globalising discussion.’ J.C Spender, Svenska Handelsbanke, Fulbright-Queen's Research Professor, Queen’s University, Canada, and Lund University School of Economics and Management, Sweden The Business School and the Bottom Line k e n s t a r k ey a n d n i c k t i r at s o o CAMBRIDGE UNIVERSITY PRESS Cambridge, New York, Melbourne, Madrid, Cape Town, Singapore, São Paulo Cambridge University Press The Edinburgh Building, Cambridge CB2 8RU, UK Published in the United States of America by Cambridge University Press, New York www.cambridge.org Information on this title: www.cambridge.org/9780521865111 © Ken Starkey and Nick Tiratsoo 2007 This publication is in copyright Subject to statutory exception and to the provision of relevant collective licensing agreements, no reproduction of any part may take place without the written permission of Cambridge University Press First published in print format 2007 eBook (EBL) ISBN-13 978-0-511-35478-6 ISBN-10 0-511-35478-9 eBook (EBL) hardback ISBN-13 978-0-521-86511-1 hardback ISBN-10 0-521-86511-5 Cambridge University Press has no responsibility for the persistence or accuracy of urls for external or third-party internet websites referred to in this publication, and does not guarantee that any content on such websites is, or will remain, accurate or appropriate Contents List of tables Acknowledgements Prologue page vi vii ix Introduction The development and diffusion of the business school 15 Business schools in the era of hyper-competition: ‘more “business” and less “school” ’ 50 Business school education 77 Business school research 115 Experiments and innovations 140 Imaginary MBAs 169 Business school futures: mission impossible? 195 Epilogue Index 228 230 Tables 2.1 US-earned degrees in business by degree-granting institutions, selected years 1955/6 to 2002/3 2.2 MBA programmes and institutions delivering MBA programmes, selected countries, January 2006 2.3 30 Estimated total cost of full-time MBA programmes, dollars, 2002–4 5.1 24 Federation of British Industries: varying definitions of key concepts, 1963 3.1 page 17 56 Business experience of tenured professors at selected top business schools, 2004 131 Acknowledgements This book is based upon work funded by the Economic and Social Research Council (ESRC) as part of its Evolution of Business Knowledge (EBK) programme (Grant RES-334-25-0009) We are very grateful to the ESRC for its support, and also wish to thank Harry Scarbrough, the director of EBK, for his guidance and advice, and the other members of our team – Catrina Alferoff, Graeme Currie, David Knights, Andy Lockett, Laura Pearson, Alison Seymour, Sue Tempest and Mike Wright – for many stimulating conversations, and inputs of energy and ideas, without which our understanding of the business school world would have been very much the poorer During the course of our research we interviewed a large number of people, who agreed to talk to us on condition that they remain anonymous, and we would like to take this chance to thank every one of them again, especially because, without exception – almost! – they answered our insistent badgering thoughtfully and with good humour Many other people have assisted us, and we acknowledge, in particular, Lars Engwall, Guiliana Gemelli, Gerry Johnson, Andrew Pettigrew, David Tranfield, John Wilson and Vera Zamagni (who helped launch the various debates that provoked our initial interest in business schools); Armand Hatchuel and Rolv Petter Amdam (who provided important entry points into the world of non-Anglo-Saxon management); Sandra Baum, Mark Clapson, Terry Gourvish, Clive Holtham, Keri Minehart, Robert S Sullivan, Sylvia Tiratsoo, Jim Tomlinson, Nigel Waite, Paula Parish and team at Cambridge University Press; and participants at a 2005 seminar at the Business History Unit, the London School of Economics and Political Science, especially Forest Capie and Roy Edwards viii acknowledgements Of course, while we have benefited greatly from the help of everyone mentioned, we alone accept responsibility for the argument that follows business school futures: mission impossible? 225 10 See pp 7–8 above and Alison Utley, ‘Outbreak of “new managerialism” infects faculties’, Times Higher Education Supplement, 20 July 2001 On this subject, see also Birnbaum, Management Fads in Higher Education 11 Michael Gibbons, Camille Limoges, Helga Nowotny, Simon Schwartzman, Peter Scott and Martin Trow, The New Production of Knowledge: The Dynamics of Science and Research in Contemporary Societies (London: Sage, 1994); and Helga Nowotny, Peter Scott and Michael Gibbons, Re-Thinking Science: Knowledge and the Public in an Age of Uncertainty (Cambridge: Polity Press, 2001) 12 Ulrich Beck, Risk Society: Towards a New Modernity (London: Sage, 1992) 13 Gibbons et al., The New Production of Knowledge, 14 Survey details at www.the-abs.org.uk/ABS_PR_25.html 15 Interview, 11 March 2004 16 Ipsos Mori finding as at 2005: see www.ipsos-mori.com/polls/trends/ truth.shtml 17 Allan Hyde and Brian Grosschalk, ‘The business world will never be the same again’, 16 September 2003, at www.mori.com 18 For a useful short introduction to current thinking, see Chris Ivory, Peter Miskell, Helen Shipton, Andrew White, Kathrin Moeslein and Andy Neely, The Future of Business Schools in the UK (London: Advanced Institute of Management Research, 2006) 19 Bennis and O’Toole, ‘How business schools lost their way’, 103 20 Washburn, University, Inc 21 Derek Bok, Universities in the Marketplace: The Commercialization of Higher Education (Princeton, NJ, and London: Princeton University Press, 2003), 77 22 Zimmerman, Can American Business Schools Survive? 23 For relevant discussion, see AACSB International Management Education Task Force, Management Education at Risk, esp 13, and Ivory et al., The Future of Business Schools in the UK, 16–18 24 Zimmerman, Can American Business Schools Survive?, 6–7 25 Robert Wiltbank, Nicholas Dew, Stuart Read and Saras S Sarasvathy, ‘What to next? The case for non-predictive strategy’, Strategic Management Journal, 27(10) (2006), 981–96 26 Andrew Inkpen and Nandan Choudhury, ‘The seeking of strategy where it is not: towards a theory of strategy absence’, Strategic Management Journal, 16(4) (1995), 313–32; Jay B Barney and Robert E Hoskisson, 226 the business school and the bottom line ‘Strategic groups: untested assertions and research proposals’, Managerial and Decision Economics, 11(3) (1990), 187–98 27 Eric W K Tsang, ‘Behavioral assumptions and theory development: the case of transaction cost economics’, Strategic Management Journal, 27(11) (2006), 999–1011 See also Ghoshal, ‘Bad management theories are destroying good management practice’, 75–91 28 Jone Pearce, ‘What we know and how we really know it?’, Academy of Management Review, 29(2) (2003),175–9 29 We have borrowed this idea from Nowotny, Scott and Gibbons, Re-Thinking Science 30 Nowotny, Scott and Gibbons, Re-Thinking Science, 262 31 Kerstin Sahlin-Andersson and Lars Engwall (eds.), The Expansion of Management Knowledge: Carriers, Flows and Sources (Stanford, CA: Stanford University Press, 2002) 32 Peter Galison and Caroline A Jones, ‘Factory, laboratory, studio: dispersing sites of production’, in Peter Galison and Emily Thompson (eds.), The Architecture of Science (Cambridge, MA: MIT Press, 1999), 497–533 33 See, for example, Stefan Stern, ‘Red faces on the City desks’, Independent, 19 March 2003, and Matthew Beard, ‘Bosses gather for audience with Enron admirer’, Independent, 29 March 2003 34 Geoffrey Tweedale, Magic Mineral to Killer Dust: Turner and Newell and the Asbestos Hazard (Oxford: Oxford University Press, 2000) 35 John Kay, The Truth About Markets (London: Penguin Books, 2004) 36 See, for example, Will Hutton, The State We’re In (London: Jonathan Cape, 1995) 37 Ulrich Beck, The Brave New World of Work (Cambridge: Polity Press, 2001) 38 Will Hutton, The World We’re In (London: Little, Brown, 2002) 39 Carrie R Leana and Denise M Rousseau, Relational Wealth: The Advantages of Stability in a Changing Economy (New York: Oxford University Press, 2000) 40 Daniel Goleman, Working with Emotional Intelligence (London: Bloomsbury Publishing, 1999) 41 What follows is based upon material at www.solonline.org 42 Peter Senge, ‘Better business’, SGI Quarterly – A Buddhist Forum for Peace, Culture and Education (October 2006), at www.solonline.org/ news/item?item_idϭ9000239 43 Pre-publicity for conference on ‘Leadership and management studies in sub-Saharan Africa’, to be held in Accra, Ghana, during 2008 business school futures: mission impossible? 227 44 Ken Starkey, ‘Critical management education – a step not far enough?’, unpublished working paper 45 See http://en.wikipedia.org/wiki/Gordon_Gekko 46 Martha Nussbaum, Cultivating Humanity: A Classical Defense of Reform in Liberal Education (Cambridge, MA: Harvard University Press, 1997), 297, 300 47 See, for example, Simon Kragh and Sven Bislev, ‘The globalisation of business schools: international business school students share many common values, but those values are not always reflected in the cultures of the institutions where they study’, European Business Forum, 22 March 2005 48 See Hazard Adams, The Academic Tribes (Urbana and Chicago: University of Illinois Press, 1988), and Tony Belcher and Paul R Trowler, Academic Tribes and Territories (Buckingham and Philadelphia: Society for Research into Higher Education/Open University Press, 2001) 49 Julia Kristeva, ‘Institutional interdisciplinarity in theory and in practice’, de-, dis-, ex-, 2, 5–6 50 Harriet Swain, ‘Come-hither eyes and some impressive publications’, Times Higher Education Supplement, 20 October 2006 51 Nancy M Dixon, Common Knowledge: How Companies Thrive by Sharing What They Know (Boston: Harvard Business School Press, 2000); Thomas H Davenport and Laurence Prusak, Working Knowledge (Boston: Harvard Business School Press, 1998) 52 Department of Trade and Industry, Our Competitive Future: Building the Knowledge Driven Economy (London: Department of Trade and Industry, 1998) 53 Anon The Responsive Ph.D.: Innovations in U.S Doctoral Education (Princeton, NJ: Woodrow Wilson National Fellowship Foundation, 2005), 54 See www.utexas.edu/ogs/development.html 55 Bengt Stymne, ‘Travels in the borderland of academy and industry’, in Niclas Adler, A B (Rami) Shani and Alexander Styhre (eds.), Collaborative Research in Organizations: Foundations for Learning, Change, and Theoretical Development (Thousand Oaks, CA: Sage Publications, 2004), 49–50 56 Bok, Universities in the Marketplace, 206 Epilogue There is a story to be found on the internet in various versions Set in a South American country, it describes a boat arriving in the harbour of a tiny village A US tourist disembarks and compliments a local fisherman on the quality of the fish he is selling Then the tourist asks the fisherman how long it took him to catch them ‘Not very long,’ the fisherman answers The American spots a business opportunity ‘Why don’t you stay out longer, and then you can catch more?’ he asks The fisherman explains that the size of the catch is perfectly adequate for his needs It is enough to feed himself and his family The American asks him what he does with the rest of his time The fisherman answers that, once his needs are met, he spends his time sleeping late, playing with his children, taking a siesta with his wife He spends his evenings in the village meeting with friends, playing his guitar, singing songs He has a full life, he tells the tourist The tourist gets excited ‘I have an MBA from Harvard Business School and I can help you What you need to is to start fishing longer every day You should then sell the extra fish that you catch, and with the extra income you earn you can buy a bigger boat, and catch more fish.’ The fisherman asks, ‘And what then?’ The tourist warms to his theme with missionary zeal ‘The larger boat will enable you to earn extra money You can then buy a second boat, a third boat Why, soon you will have enough money to own a whole fleet You won’t need a middleman to sell your fish on You will be a big player, who can negotiate directly with the processing plants The sky’s the limit! You could even buy your own plant Then you could leave this small village and move to the capital, or Los Angeles, or New York You could become the chief executive of a major international corporation.’ epilogue 229 The fisherman asks how long all this will take ‘Twenty to twenty-five years maximum,’ answers the tourist ‘And after that?’ enquires the fisherman ‘Well,’ says the tourist, ‘then it gets really good When your business is really big you can start playing the stock market and make really serious money – millions and millions.’ ‘And after that?’ the fisherman wonders ‘After that you’ll be able to take it easy – retire, even Relocate to a small village near the sea, sleep late, play with your children, go fishing for fun, take a siesta with your wife, spend your evenings playing the guitar, singing with friends.’ Index AACSB (American Assembly of Collegiate Schools of Business) 21 fostering diversity 40 history of 36–9 mission linked approach 41 AACSB International business doctorate figures 209 competitive advantage of accreditation 63 current number of business programmes 79 ethical and legal provision in curricula 80, 81–2 influence on business school curricula 100–2 influence on research in business schools 117 list of accredited business schools 38 relevance of business school research 129 report on faculty salaries 51 view on business school research 123 ABS (Association of Business Schools) 33 Academy of Management 67, 123–4, 210–11 accreditation competitive advantage 63 ethical and legal provision in curricula 80, 81–2 history of 35–9 accreditation institutions influence on business school curricula 100–2 influence on research in business schools 117 accredited business schools 38–9 battle for market share 37–9, 40–1 enforcement of standards 41–2 impact on standards 39–41 rise of 36–9 see also AACSB (International); AMBA; EFMD accredited business schools 38–9 Africa, business education and management 18, 19, 218 agora (knowledge space), future model for business schools 211–24 AIESEC 33 alumni networks 56–7 AMBA (Association of MBAs) 33 accredited business schools 39 competitive advantage of accreditation 63 evaluation procedure 41–2 history of 36, 37–9 influence on business school curricula 100–1 American business model (ABM), criticisms of 215 search for alternatives 215–19 American business school model 8–10 alternatives to 10 see also diffusion of the American model American capitalism, fixation on short-term profit American controversies over business schools 20–3 Amos Tuck School of Business Administration 104 Ankers, Paul 127–8 Arnold, Matthew 191–2 Ashridge 38, 39 Asia, growth of business education 18–19 Aspen Institute ‘alternative’ rankings 80 Beyond Grey Pinstripes initiative 80 ISIB student survey 106–7 Association of Collegiate Business Schools and Programs 41 Aston business school 38, 39 Attlee, Clement 27 Australia, MBA programmes and institutions 24 Australian GSM, increase in tuition fees 56 index 231 Babson College 104, 131 bachelor’s degrees in business, early development 16–17 Bain, George 116 Bain and Company, list of popular business tools 128 Barrett, Douglas 106 Bates, Hilary 128 Begg David 116 Bennis, Warren 205 Beyond Grey Pinstripes initiative 80 BGA see Business Graduates Association BI school, Oslo 62 BIM (British Institute of Management) 25 Bok, Derek 208, 224 Borges, Antonio 37 Borna, Shaheen 106 Brabston, Mary 106 Bradford University School of Management 39 branding/rebranding of business schools 63–4 Brennan, Ross 127–8 Bristol University 199 budget pressures on business schools 51–5 competition from new providers 53 decline in demand for MBA programmes 52–3 escalating faculty salaries 51 financial uncertainty 51–2 geopolitical factors 53 government cutbacks 51 government interference 52 loss of market share 53 reduced value of endowments 51 reduced value of savings 51 budget strategies for business schools cost cutting/restraining 57 diversification of business programmes 60–1 diversification of target student market 58–9 fund-raising 56–7 increase in donations 56 increases in tuition fees 55–6 negotiation on annual tariff 57–8 push for financial autonomy 57–8 restructuring of MBA programmes 59–60 role of the dean 55 targeting overseas students 59 targeting women students 58–9 unique selling point 61–4 use of alumni networks 56–7 Bush, George W 1, 183 business ethics 81 see also curriculum developments; ethics Business Graduates Association 33, 36 business gurus, business origins 124–6 business ideas, sources of 124–6 business programmes, number running 79 business school education developing concern with ethics 79–82 diversification of programmes 60–1 fictional illustration of dilemmas 169–93 effects of curriculum changes 77–8 impetus for curriculum changes 77–8 keeping curricula up to date 79 rates of curriculum revision 78–9 social and environmental awareness 80 tendency towards sameness 78 business school models see diffusion of the American model business school pedagogy attitude towards the workforce 98–100 case study component 83–9 case study teaching method 89–100 changes in philosophical approach 82 changes in teaching methods 82 changes in use of case studies 83–9 ‘corporate capture’ notion 102–4 curriculum inertia 100–9 devaluation of teaching 108 ethical issues in case studies 97 influence of accreditation agencies 100–2 influence of student demands 105–7 lack of diversity in examples used 97 managerial perspective 98 narrow frame of reference 97–8 neglect of contextual issues 99 partial and outmoded view of issues 97–100 pressure from business interests 102–4 business school performance, establishment view 2–3 business school rankings see published rankings business schools intensity of competition 1–2 reflection of corporate scandals 80 sphere of influence see also rise of the business school 232 index BusinessWeek business experience of business school professors 131 business school curriculum changes 77–8 business school profiles 78–9 business school rankings 54, 67–8 list of best business books 128 top fifty MBA programmes 81 business world changes, impacts on business schools 9–10 Cambridge Judge 39 Cambridge University, attitude towards business education 28 Canada, MBA programmes and institutions 24 Carnegie Foundation 21 case studies and corporate scandals 103–4 attitude towards the workforce 88–9 conservatism 88–9 dated business assumptions 88–9 distributors 83 easyJet 84–5 Enron 103–4 Federal Express 87–8 Harvard case study method 83 influence of the corporate sector 103–4 lack of context 85–7 lack of hard supporting evidence 87–8 lack of inquisitive intent 88 lack of scepticism 88–9 limited range of sources 84–5 Lufthansa 85–7 managerial perspective 87–8 neglect of wider factors 85–7 omission of issues that not fit 87–8 partial and outmoded view of issues 97–100 perspective on labour issues 87–8 predominance of management voices 84–5 quality of research 84 reliance on CEO observations 84–5, 88 role in MBA curricula 83 subjectivity 84–5 value of distribution business 83 weaknesses in 84–9 case study teaching method attitude towards the workforce 98–100 classroom teaching methods 89–100 classroom teaching research report 90–100 evasion of awkward issues 98, 99 in British business schools 25 managerial perspective 98 narrow frame of reference 97–8 neglect of contextual issues 99 partial and outmoded view of issues 97–100 teaching note 89, 90 treatment of ethical issues 97 Cass Business School, London 39, 61–2, 116 Cavalle, Carlos 37 Chalmers University 223 Chartered Management Institute, UK 206–7 China, growth of business education 18, 19, 31–2, 201–2, 204, 218 Cohen, Peter 105 competition among business schools 50–5 and escalating faculty salaries 51 and the profusion of business schools 50 expanding recruitment sources 53 geopolitical factors 53 influence of published rankings 54 pressures on business school budgets 51–5 web-based or distance learning courses 53 competition with business schools management consultancies 53 new ‘for-profit’ providers 53 web-based or distance learning courses 53 competition strategies accreditation 63 attempts to influence rankings 67–70 branding/rebranding 63–4 building campuses abroad 59 creation of a distinct identity 61–4 data compilation and reporting issues 67–70 distance learning 59–60 diversification of business programmes 60–1 executive MBA programmes 60 focus on the bottom line 55–8 gamesmanship 64–70 generous appraisal procedures 64–7 image and positioning 61–4 increased marketing effort 63–4 lavish facilities 62–3 more choice for students 59–61 new buildings and campuses 62–3 index 233 online delivery of programmes 59–60 partnerships within the same field 63 playing the system/bending the rules 64–70 press handouts and websites 62–3 restructuring of MBA programmes 59–60 role of the dean 55 target market diversification 58–9 targeting overseas students 59 targeting women students 58–9 tighter focus of activities 61–2 unique selling point 61–4 consultants competition with business schools 53 contribution to business ideas 130 contextual issues, neglect in case study teaching 99 contextualisation of knowledge 199–201 Corley, Kevin 68 Cornell University Johnson Graduate School 69 corporate citizenship 81 see also curriculum developments corporate scandals 4, 5–6, 80, 103–4 corporate social responsibility courses 81 see also curriculum developments Crainer, Stuart 60 Cranfield 38, 39, 56 critical management studies (CMS) 218 criticisms of business schools 2–6 American controversies 20–3 business school establishment view 2–3 corporate scandals reflect badly 4, 5–6 devaluation of the MBA degree 5–6 dissatisfaction within faculty ethical concerns 3, lack of evidence for value creation no correlation between MBA and career success not delivering as claimed preoccupation with money problems with donors propagation of morally unsound ideas relevance of teaching to business life research has little academic impact research has little impact on business students’ concerns curriculum developments business ethics courses 81 corporate citizenship courses 81 corporate social responsibility courses 81 developing concern with ethics 79–82 effects of 77–8 impetus for 77–8 keeping up to date 79 rates of curriculum revision 78–9 social and environmental awareness 80 stakeholder management courses 81 see also business school pedagogy curriculum inertia devaluation of teaching 108 in case study teaching 89–100 influence of accreditation agencies 100–2 influence of student demands 105–7 pressure from business interests 102–4 reasons for 100–8 Daniel, Carter A 16 Darden 78 Dartmouth 131 Davenport, Thomas 124–6 De Tocqueville 192 dean, role of 55 DeAngelo, Harry 67 DeAngelo, Linda 67 DeMott, Benjamin 172 Department of Trade and Industry, UK 221 diffusion of the American model 23–6 diffusion of the American model (accelerators) 31– changes in the 1980s and 1990s 31–5 commercial pressures on universities 32–3 consultancy recruitment 34 financial services recruitment 34 globalisation 34 higher education system reforms 32 improved business school recruitment 32–3 improved corporate attitudes 34 legislation reforms 31–2 marketing of business schools 32–3 MBA attractiveness to students 35 profitability of business courses 32–3 promotion by pressure groups 33 diffusion of the American model (retardants) 27–31 anti-American feeling 27, 30–1 cultural incompatibility 28 difficulty of creating new qualifications 27–8 doubts about American standards 31 234 index diffusion of the American model (cont.) legal obstacles 27 obstacles in higher educational systems 27–8 political obstacles 27 prejudice against business education 28–9 scepticism of students 30–1 status anxieties 31 distance learning courses 53 donors, problems with Doriot, George Drucker, Peter 22, 125 easyJet, case study 84–5 ECCH (European Case Clearing House) 83 annual prizes for best-selling cases 83, 84–8 The Economist business school rankings 54 business school research 133 Edinburgh Business School, Herriot-Watt University 60 EFMD (European Foundation for Management Development) 33 history of 37–9 EFMD (EQUIS arm) 37, 218 accredited business schools 38–9 competitive advantage of accreditation 63 ‘European values’ 40 influence on business school curricula 100–1 influence on research in business schools 117 relevance of business school research 129 Eliot, Charles W 195 Enron 4, 6, 80, 103–4, 214 environmental awareness, in business school programmes 80 environmental science 200 EQUIS (European Quality Improvement System) see EFMD (EQUIS arm) Erasmus, increase in tuition fees 56 ESADE 38, 56, 64, 131 ESCP 38 ESSEC 38 Essen 56 ethics, concerns about business schools 3, ethics teaching case studies’ treatment of ethical issues 97 developing concern in business schools 79–82 impact of corporate scandals 80 European Academy of Business in Society 80 European Case Clearing House see ECCH European Foundation for Management Development see EFMD European Union, promotion of business schools 18 Evans, Fred 81 Evans, Reg 188 executive MBA programmes 60 ranking (Financial Times) 60 experiments and innovations alternatives to classical research model 145–65 collaborative research models 146–65 Financial Services Research Forum (FSRF), Nottingham University 147–65 Rady School of Management, San Diego 141–5 reassessment of the MBA 140–5 research forums 146–65 faculty of business schools dissatisfaction within recruitment and pay levels 51 Federal Express, case study 87–8 Federation of British Industries, report on business education (1963) 29–30 fees see tuition fees Fenix programme 223 Financial Services Research Forum (FSRF), Nottingham University 147–65 Financial Times business school curriculum changes 78 business school rankings 54, 67–8 ‘dumbing up’ of management theory 121–2 Executive MBA ranking 60 interview with retiring dean of Yale 129 isolation of management teachers 123–4 report on faculty restructuring 116 student surveys report 106 Fong, Christina 4, 128–9 Foppen, Wil 37 ‘for-profit’ providers of business education 53 Forbes, business school rankings 54 Ford Foundation 17, 20, 23, 25, 28 index 235 Forster, E M 173 forums for research collaboration 146–65 France, business education 23, 24, 29, 33 fund-raising 56–7 Fuqua School, student surveys 106 future of business schools academic model 208–11 alternative models debate 204–11 alumnus income 202–3 American business model alternatives 215–19 American business school model alternatives 10 Americanisation question 8–10 as agora (knowledge space) 211–24 business doctorates 209 changes in knowledge production 199–201 changing role of the university 197–9 commercial pressures 7–8 contextualisation of knowledge 199–201 continuation of the current system 201–4 contribution of the arts and humanities 218–19 cost structure constraints 203 effects of negative perceptions 203–4 impacts of business world changes 9–10 long-term viability concerns 195–6 MBA demand saturation point 201–2 possible demise 203–4 possible future scenarios 201–24 power issues 207–8 problem of definition of purpose 207 professional model (closer link with management) 204–8 range of pressures 7–10 relationship with universities 7–8 ‘responsive’ PhD programmes 222 Garten, Jeffrey E 78, 129 Gekko, Gordon see Wall Street (Oliver Stone) geopolitical factors, effects on business school budgets 53 Georgetown Business School 131 Germany attitudes towards business education 29 changes to higher education system 32 response to the American model 23, 24 Ghoshal, Sumantra 4, 85–7 Gibbons, Michael 200-1 Giddens, Anthony 10 Gioia, Dennis 68 Goleman, Daniel 125 Gordon, Robert Aaron 20 government involvement, control of levels of fees in India 52 The Great Gatsby (Fitzgerald) 189 Haas School, increase in tuition fees 55 Haji-Ioannou, Stelios 85 Hambrick, David 123 Hamel, Gary 125, 126 Harvard Business Review 121–2, 126, 172, 205 Harvard Business School 1, 3, 183, 224 case study method 9, 83, 90 distribution of case studies 83 establishment of 195 Enron case studies 103–4 mission 195 overseas partnerships 18 Harvard University 208 Haskins, Mark 78 HEC Paris 38, 131 Heller, Joseph 172 Helsinki School of Economics and Business Administration 38, 56 Henley Management College 38, 39, 60 Herberger, Roy 37 Hopwood, Anthony 121 Howell, James Edwin 20 Humboldt, William von 196–7 Hutton, Will 10 identity of business schools 61–4 IEDC-Bled School of Management, Slovakia 63 IESE (Spain) 37, 131 image and positioning 61–4 imaginary MBA class, fictional illustration of dilemmas 169–93 IMD 38, 87–8, 131 Imperial College London, business school 3, 57, 116 Indian business schools 201–2, 204, 218 government control of fees 52 status and ‘babuism’ 31 innovations see experiments and innovations INSEAD 9, 37, 38, 57 236 index Institute for Enterprise and Innovation, Nottingham 222 International Herald Tribune, business school rankings 54 International Journal of Operations and Production Management 128 Italy, US business education initiatives 23–5 Jacobs, Irwin 143 Japan attitudes towards business education 28–9 business school teaching in English 33 changes to postgraduate education system 32 lifetime employment system 28–9 response to the American model 23, 24 Japanese MBA graduates, problems in the old system 34 Journal of Operations Management 128 Kay, John 215 Kellaway, Lucy 121–2 Kerr, Clark 197 Kirp, David Knights, David 147–50, 158 knowledge, contextualisation 199–201 knowledge production, changes in 199–201 Kriel, Lomi 69–70 Kristeva, Julia 220 Krooss, Herman 22 Kumar, Nirmalya 84–5 Lancaster University Management School 39, 57 Langfed, Claus 122 league tables see published rankings Leavitt, Harold 106 Lewis, Michael 128 Linux 184–5 Lodge, David 173 Loftuss, Maria 143–4 Logue, Denis 51–2 London Business School 4, 26, 38, 39, 77, 116, 125, 131 appraisal procedures 65 proportion of overseas students 59 Lufthansa, case study 857 Lyotard, Jean-Franỗois 198 management consultancies, education programmes 53 Management Today 134 Marcal, Leah 81 March, Jim 216 Marconi 80 Mark, J Paul 90 marketing of business schools 63–4 branding/rebranding 63–4 diversification of target student market 58–9 press handouts and websites 62–3 marketplace ethic in business schools 7–8 Marx, Karl 190 Massachusetts Institute of Technology 216–17 Master of Business Administration degree see MBA degree master’s degrees in business, early development 16–17 Matten, Dirk 81 Mays Business School, ranking 69–70 MBA (Master of Business Administration) degree concerns about declining value 78 devaluation of 5–6 faked degrees 42 influence of lack of correlation with career success negative views of MBAs 106 MBA programmes arduous reputation 105 competitive restructuring 59–60 decline in demand for 52–3 demand saturation point 201–2 distance learning 59–60 diversification of target student market 58–9 early development of master’s degrees in business 16–17 experiments and innovations 140–5 factors affecting demand 52–3 fictional illustration of dilemmas 169–93 imaginary MBA class 169–93 institutions delivering MBAs (selected countries) 24 online delivery 59–60 reorientation towards business needs 140–5 shorter timescale 60 standards issues 64–7 tailored for executives 60 index 237 MBA students concerns ethical concerns 106–7 evolving view of business 106–7 influence on curricula 105–7 social responsibility 106–7 McGill University 4, 56 McKibbin, Lawrence 21, 36, 39, 79, 115–16 Miller, Patrick 32–3 Mintzberg, Henry 4, Money, Arthur 32–3 money preoccupation, criticism of business schools Moon, Jeremy 81 neoliberal free market model, criticisms of 215 Nepal, growth of business education 19 New York Times, business school curricula 79 Notre Dame 131 Nottingham University Business School (NUBS), FSRF 147–65 Nussbaum, Martha 219 O’Toole, James 205 Open University 39, 60, 141, 222 Opus Dei 18 overseas campuses 59 overseas students, targeting by business schools 59 partnerships, within the business school field 63 Paul Merage School of Business, increase in tuition fees 55 Pearce, Jone 67, 211 Penrose, Edith 126 Pfeffer, Jeffrey 4, 5, 128–9, 174 Porter, Lyman 21, 36, 39, 79, 115–16 Porter, Michael 184, 193 Prahalad, C K 126 press handouts 62–3 Price College of Business, University of Oklahoma 51–2 Prusak, Laurence 124–6 published rankings attempts to influence 67–70 business schools’ research contribution 117 influence of 54 Queen Mary College, University of London 140–1 Rady, Ernest 144 Rady School of Management, San Diego 141–5 RAE see Research Assessment Exercise rankings see published rankings Readings, Bill 198 Research Assessment Exercise (RAE) 117, 118, 119, 120, 126–7, 133–5 research forums 146–65 research in business schools business experience of professors 130–1 business school cultural prejudices 130–5 capital asset pricing model 127 comparison with consultants 130 domination of US journals 122–3 drivers behind shift towards 116–17 effects of the ‘academic’ research model 130–5 engagement with outside organisations 126–7 evaluation of quality 119–23 evaluation of relevance to end users 123–9 faculty restructuring exercises 116 financial benefits 116, 117 impacts of audit and ranking 121–2, 133–5 impacts of RAE (Research Assessment Exercise) 117, 118, 119, 120, 133–5 increase in number of journals 118 increasing rate of production 118 influence of accreditation agencies 117 lack of academic impact lack of impact on business lack of influence 127–9 link to grant allocation 117 origins of business ideas 124–6 preoccupation with publication 115–19 priority over teaching 115 reasons for limited relevance 129–35 rise of research 115–19 specialist rankings and league tables 116–17 UK government involvement 117 US domination of judgements of validity 122–3 research models, alternatives to the classical model 145–65 researching business schools, challenges 11–12 238 index Riesman, David 30 Rigby, Darrell 128 rise of the business school American controversies 20–3 eastern Europe 19 global spread 18–19 growth in the US 15–17 origins 15 spread of American influence 19 spread to Europe 17–18 United Kingdom 25–6 see also diffusion of the American model Rochester Business School 131 Rogers, Brian 84–5 Ross, Stephen M 56 Rotterdam School of Management 37, 38 Russia, MBA programmes and institutions 24 Said Business School, Oxford 121, 222 SDA Bocconi 38, 56 Senge, Peter 125, 216–17 Shank, John 104 Singapore, growth of business education 19 Skapinker, Michael 6, 123–4 Slack, Nigel 128 Smith, Frederick W 87–8 social awareness, in business school programmes 80 Society for Organizational Learning (SoL) 216–17 Southern California Business School 131 Spain, MBA programmes and institutions 24 St Gallen, Switzerland 62 stakeholder management 81 see also curriculum developments Stallman, Richard 185 standards of MBA programmes, issues 64–7 Stanford 3, 4, 31, 131, 216 Stearns, James 106 Stockholm School of Economics 223 Stone, Oliver (Wall Street) 169, 170, 175–9, 219 discussion 179–93 Strathclyde Business School 38, 39 students see MBA students Sugar, Sir Alan 34 Sullivan, Robert 141–5 Swanson, Diane 81 Sweden, Universum Communications student survey 106 Tanaka, Gary 3, 57 teaching see business school pedagogy Thunderbird Business School 38–9 Tokyo University 28 Toronto Business School 131 Torvalds, Linus 185 Trilling, Lionel 173, 191 Trump, Donald 60 TrumpU 60 tuition fees government control in India 52 increases in 55–6 Tweedale, Geoffrey 215 Tyson, Laura D’Andrea 77 UCLA 131 UCSD (University of California, San Diego) 7, 141–5, 222 UK attitudes towards business education 29 controversies over business schools 25–6 response to the American model 24, 25–6 UK government, knowledge initiatives 221–2 UK Treasury, published business school rankings 54 UNC Chapel-Hill 131 unique selling point 61–4 universities emergence of modern form 196–7 impacts of commercial pressures 7–8 increasing pressures on 197–9 loss of raison d’être 197–9 requirement to justify contribution 197–9 tension between research and professional training 197 University of Bath School of Management 82 University of Houston Victoria, School of Business Administration 63 University of Kansas 81 University of Leeds Business School 39, 127 University of Luton 66 University of Manchester Institute of Science and Technology (UMIST) 147–50 University of Michigan Business School 56 University of Newcastle Graduate School, Australia 66–7 University of Texas at Austin 131, 222 index 239 University of Texas School of Management, ranking of schools’ research contribution 117 US, MBA programmes and institutions (January 2006) 24 US News and World Report, business school rankings 54, 69–70 value creation in business schools Vanderbilt Business School 131 Virginia Business School 131 Waite, Nigel 150–3, 157, 163 Wal-Mart 79, 102–3 Wall Street (Oliver Stone) 169, 170, 175–9, 219 discussion 179–93 Wall Street Journal, business school rankings 54 Walton Family Foundation 102–3 Warrington Business School 38–9 Warwick University Business School 38, 39, 58 Washburn, Jennifer 208 Washington University, St Louis 122 web-based courses 53 Weber, Max 169–70, 179, 190 websites as marketing tools 62–3 Wharton School 15 Whyte, William 30 Williams, Robert 106 women, targeting by business schools 58–9 Yale 78, 129, 131 Yeates, W B 192 Zimmerman, Jerold 67 Zuboff, Shoshana 172 ... Introduction The development and diffusion of the business school 15 Business schools in the era of hyper-competition: ‘more business and less school ’ 50 Business school education 77 Business school. .. handout material as fact The the business school and the bottom line more we have immersed ourselves in the business school world, the more we have become aware of the fact that appearances and. .. two of the major challenges that the business schools will inevitably have to negotiate in the near future The first is the relationship between the schools and their mother institutions, the universities