Rethinking the business models of business schools: A critical review and change agenda for the future

• Main Authors: PETERS, Kai, SMITH, Richard Raymond, THOMAS, Howard
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2018
• Subjects: Business Model; Business School; Management Education; Business; Higher Education
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/5914
• Institution: Singapore Management University

Management education growth and theaccompanying business school rise over the last few decades have been fuelledby the global economic development coupled with the promise of success inbusiness careers. Recently, new questions have been raised about the value,relevance, and the willingness-to-pay for a traditional business schooleducation. What does the future hold for traditional business schools?We examine the current model and pressurepoints of the business school by considering the evolution and the variousvalue chains that are associated with the offerings (MBA, undergraduate,pre-experienced, and executive programmes). We provide insight on the fundingand value orientation and the potential challenges this may raise for someschools. To highlight the challenges, we provide strategic group framework forbusiness schools and review implications on the future strategy for thesegroups. After reviewing the current landscape ofbusiness school mergers, alliances, and failures, we reflect on innovationconsiderations for the business model of business schools. It is clear thatmanagement education is changing and business schools must be ready tore-evaluate their strategy for growth… and in some cases, survival.