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Creating and Delivering Business Education for a Sustainable World

Authors:

Abstract

Purpose: The purpose of this article is to stimulate discussion and further research on the topic of managerial education in developing markets. The availability of business education in these markets is vital to the development of sustainable livelihoods and the alleviation of poverty. The proposed concepts emphasize adaptation to the realities of emerging economies, the converging global environment, and sustainability. Conceptual Frame: The paper’s concepts rest on three key components: 1) design parameters for business education in developing markets, 2) appreciative management education frameworks focused on the three outcomes of people, profit, and planet, and 3) a process-focused organization and service delivery model. The first component of the approach, design parameters, explicitly includes an awareness differences in designing an educational service for bottom of the pyramid markets. The second component, appreciative management education, rests on a model of moving from whole personship to holistic organizations to sustainable systems thinking. The final component, organization and service delivery model, rests on an explicit yet flexible process-based approach to designing an organization to deliver educational services. Questions: 1. How can stakeholder needs best be translated into business and managerial education services suitable for developing markets? 2. What role should sustainability play in business and managerial education in developing markets? 3. How can appreciative processes be used to describe competency-based business and management educational outcomes? 4. What are feasible approaches to the use of process-frameworks in designing and delivering educational services in developing markets? Originality/value: Tertiary education presents a rapidly growing sector of international trade. Trade in educational services represents one of the largest services trade areas rivaling financial services. The design and delivery learning models for these services must be distinguished from traditional university settings due to resource level differences and the need to build curriculum expressly grounded in holistic sustainability concepts. The approach presented supports alternative models and approaches in this growing area of international trade. The effective delivery of these services in developing markets is also a key factor of success in building sustainable livelihoods and alleviating poverty in these regions. The concepts and models presented offer direction in these areas and are intended to stimulate further discussion and research in this area.
Business as Agent of World Benefit
2006 Global Forum
Creating and Delivering Business Education for a Sustainable World1
Douglas J. Gilbert, J.D. M.B.A.
University of Phoenix, USA
Contact Information:
University of Phoenix, Colorado
10004 Park Meadows Drive
Lone Tree, CO 80124
720-548-3253 /
Doug.Gilbert@Phoenix.edu
Doug.Gilbert@RenewalNet.com
Hélène I. Savard, EDD
Sir Sandford Fleming College, Canada
Contact Information:
Sir Sandford Fleming College
200 Albert St South
P.O. Box 8000
Lindsay, ON K9V 5E6
Phone: (705) 324-9144 ext. 3274
hisavard@hotmail.com
August 31, 2006
1 The statements, opinions, views, and recommendations in this article represent those of the authors are not those of
their employers or any affiliated organizations.
© 2006 by Douglas J Gilbert and Hélêne I Savard. All rights reserved
Creating and Delivering Business Education i
Abstract
Purpose: The purpose of this article is to stimulate discussion and further research on the topic
of managerial education in developing markets. The availability of business education in these
markets is vital to the development of sustainable livelihoods and the alleviation of poverty. The
proposed concepts emphasize adaptation to the realities of emerging economies, the converging
global environment, and sustainability.
Conceptual Frame: The paper’s concepts rest on three key components: 1) design parameters
for business education in developing markets, 2) appreciative management education
frameworks focused on the three outcomes of people, profit, and planet, and 3) a process-focused
organization and service delivery model. The first component of the approach, design
parameters, explicitly includes an awareness differences in designing an educational service for
bottom of the pyramid markets. The second component, appreciative management education,
rests on a model of moving from whole personship to holistic organizations to sustainable
systems thinking. The final component, organization and service delivery model, rests on an
explicit yet flexible process-based approach to designing an organization to deliver educational
services.
Questions:
1. How can stakeholder needs best be translated into business and managerial education
services suitable for developing markets?
2. What role should sustainability play in business and managerial education in
developing markets?
3. How can appreciative processes be used to describe competency-based business and
management educational outcomes?
Creating and Delivering Business Education ii
4. What are feasible approaches to the use of process-frameworks in designing and
delivering educational services in developing markets?
Originality/value: Tertiary education presents a rapidly growing sector of international trade.
Trade in educational services represents one of the largest services trade areas rivaling financial
services. The design and delivery learning models for these services must be distinguished from
traditional university settings due to resource level differences and the need to build curriculum
expressly grounded in holistic sustainability concepts. The approach presented supports
alternative models and approaches in this growing area of international trade. The effective
delivery of these services in developing markets is also a key factor of success in building
sustainable livelihoods and alleviating poverty in these regions. The concepts and models
presented offer direction in these areas and are intended to stimulate further discussion and
research in this area.
Creating and Delivering Business Education iii
About the Authors
Doug Gilbert is an Assistant Dean (Campus Chair) of Graduate
Business and faculty member at the Colorado Campuses of the University of
Phoenix. He holds a Juris Doctor (JD) degree from the University of Iowa and a
Master of Business Administration (MBA) from the Université de Genève (IMI/IMD) in
Switzerland. He is also a doctoral candidate in the Doctor of Business Administration (DBA)
program at the University of Phoenix.
Doug’s management education design experience spans over 15 years starting with
design of executive MBA programs for Schiller International University in Strasbourg, France.
He was appointed a professor of business law at Schiller and continues to teach in the program
he designed. He also has service as general counsel for a private international university
operating 11 learning centers in 10 countries, including several developing countries.
Doug’s current research is centered on appreciative strategy, an outgrowth of appreciative
inquiry theories. A key area of his current work is devoted to improving the use of appreciative
strategy and vision in corporate turnaround efforts in American and German companies. This
research is an outgrowth of his previous consulting work in the area of change management
using appreciative inquiry while at Cap Gemini Ernst & Young.
Hélène I. Savard is an Ecosystem Management professor at Sir
Sandford Fleming College, in Peterborough Ontario, Canada, and Chair
of the School of Health and Environmental Studies at Centennial University
in Dubai, U.A.E. Hélène is an eco-educator. Her philosophy stems from the
Creating and Delivering Business Education iv
ecology of universality, a careful balance of the ideal, the real, the practical, the natural, the
existential, and the multicultural.
In 1995, she conceived and spearheaded an innovative college community-based (CCB)
program at Fleming where student-teams work under the supervision of an agent and college
faculty to develop and complete an ecosystem management or natural resource-based project in
the field. Hundreds of extraordinary community projects have resulted from this initiative.
The CCB program is the highlight of her EDD doctoral dissertation (University of
Phoenix, Arizona, USA) in Educational Leadership. Hélène has a diverse background in science
and education including studying Forestry at Lakehead University, Animal Functional
Morphology at Trent University, and the effects of organic pesticides on amphibians for her MSc
Biology at Larentian University. She also has her BEd from the University of Ottawa. In her
spare time, she manages to find time for extracurricular studies and eco-adventures in exotic
places such as Haïda Guaii, Mount Fuji, Costa Rica, Middle East Deserts, and the bayous of
Louisiana.
Creating and Delivering Business Education 1
I. Preface—Purpose of this Paper
The purpose of this paper is to further the discussion and debate on the topic of
globalization of management education in an era when social and economic sustainability have
come to the forefront. Management education represents a cornerstone of sustainable
development through its ability to enable leadership of commercial enterprises. The paper will
develop several themes that represent the key areas from design to delivery of management and
leadership education in a global, interlinked economy. The themes developed are not meant to
represent an exhaustive discussion of the topic. Instead, each of the areas should serve as a
platform for further discussion and research.
II. Challenges and Opportunities
Today’s societies and economies must operate in a network of globally interconnected
stakeholder interests (European Foundation for Management Development [EFMD], 2005;
Commission on the Private Sector & Development [CPSD], 2004). Such an increasingly
integrated world requires changes to learning systems to provide educational and training
services to a broad array of global stakeholders. Furthermore, market dynamics in developing
countries are militating for dramatically different approaches to business. Prahalad (2006a)
describes a huge global market of consumers, termed bottom of the pyramid that numbers in the
billions and is underserved by the existing business models. By logical extension there is a lack
of management education appropriate for these markets. The size and scope of these markets
support claims that management and business leadership are becoming a true global profession
(Cabrera & Bowen, 2005). Societal and economic progress, therefore, requires a generation of
“globally responsible leaders who think critically, holistically, and reflectively” (EFMD, p. 36).
Creating and Delivering Business Education 2
Globalization of business and the potential of the bottom of the pyramid markets suggest
that higher education programs and outcomes should be developed and delivered in a non-
traditional yet trans-national fashion. The borders of a particular country no longer define the
skills and competencies required in a globally interconnected world. Furthermore, there is a
growing trend toward educational services themselves occupying a key role in international
trade.
The estimated value of trade in education services in 1999 reached $30 billion, nearly
half of the value of trade in financial services (Saner & Fasel, 2003). Saner and Fasel also
estimated that around 35% of Australia’s university students and more than half of those in
Singapore and Hong Kong are offshore. International trade in educational services is seen as a
viable and preferred alternative to foreign aid because of the ability of education to enable
sustainable economic activity (Harman, 2004).
The internationalization of trade in educational services challenges the multiple systems
of tertiary management education built on existing national educational models. First, quality
assurance programs, such as HACCP, FSEP, WHMIS and ISO 140001, are rapidly becoming
significant business and educational concerns and norms. Quality programs are spreading and
interconnecting from Europe to North America, from the Middle to the Far East, across to Latin
America (Health Canada, 2006; Harman & Meek, 2000; Canadian Food Inspection Agency,
2006). Nevertheless, the historical and contemporary approaches to business education quality
control dates back to the 1950 with the studies of the Carnegie and Ford Foundations. One key
result of these studies was a wider adoption of program accreditation models for quality
assurance. Those models of the 1950s have not kept up with the pace of internationalization,
Creating and Delivering Business Education 3
management, leadership, and related delivery of educational services (Brennan & Shah, 2000;
Harman & Meek).
A second challenge that arises is the relevance of management education to the work of
business in a globally linked economy. Management education routinely comes under attack for
promoting ideological, amoral theories that have little attachment to the needs of the web of
globally interconnected stakeholders (Bennis & O'Toole, 2005; Ghoshal, 2005). In a globally
linked economy the issue of relevance is all the more poignant. Mintzberg (2004) captures the
essence of the problem in his critique of the American MBA degree as a “1908 degree with its
1950s strategy” (p. 411). Such traditional management programs are ill equipped to deliver on
the goal areas of people, profits, and planet that has come to dominate sustainability logic
(Zwetsloot, 2003).
A third series of challenges relates the lack of focus on the skills of leadership,
management, and change in terms of practical applications. The essence of this challenge is a
concurrent integration of leadership, education, and their associated practices (Gosling &
Mintzberg, 2004). The challenge includes accommodating the differing needs of the bottom of
the pyramid markets (Prahalad, 2006a). Concurrence of practice and learning necessitates
thoughtful reflection on the lessons learned and the significance of the concepts. In the new
realities of a global economy, that reflection must include the internalization and externalization
of educational, management, and leadership theories. Business education programs must
cultivate critical thinking skills at a global level.
The challenges give rise to a range of opportunities. First, management education
presents substantial opportunities to the global market via the assimilation of compelling and
consenting value propositions at the individual, organization, and societal/cultural levels
Creating and Delivering Business Education 4
(Association to Advance Collegiate Schools of Business [AACSB], 2005). At the personal level,
the managerial and leadership skills are of benefit through enhanced abilities to lead
organizations and in the process to ensure a more productive working life. The organizational
level benefits translate into value through better effectiveness and efficiency as innovation. The
societal/cultural value propositions follow from the individual and the organizational level
through the broader creation of wealth and economic development.
To address the challenges and seize the opportunities, a new approach is needed. That
approach is described below. The components of the approach rest in taking a new approach to
the design and delivery of management education in a global setting.
III. Designing Management Education in the New Realities of a Global Market
The new realities occasioned by the move from national systems of higher education to a
global community of management education presents a series of challenges relating to the design
of the programs as well as delivery systems. The following discussion will introduce the
concepts of design parameters (the underlying guiding principles), design dimensions (the
environmental influences of learning programs), and positive appreciative management
curriculum (educational program structure). The following discussion should be seen as
introduction of the concepts rather than a definitive or prescriptive statement about a single
solution for global management education.
A. Design Parameters
Case examples foretell the coming difference in management education in a global world.
A typical MBA in the U.S. can often cost upwards of USD 40,000 to 80,000 (U.S. News, 2006)
and top programs in Europe may charge upwards of EUR 49,000 (~USD 68,800; Economist
Creating and Delivering Business Education 5
Global Executive, 2005). That is in contrast to the tuition of USD 3,000 for a two-year distance
MBA program at the Mahatma Gandhi University in Dubai (Mahatma Gandhi University, n.d.)
or around USD 18,000 at Abu Dhabi University (Strategy.com, 2006). The tuition in a location
such as Dubai represents only one aspect of magnitude of difference. The Indian Institute of
Management in India, for example, delivers a selective MBA program for around USD 5,500
(Economist Global Executive, 2002). Introducing management education into even more
resource-challenged markets and extending the curriculum to more basic levels will demand
delivery of a quality product at an even lower cost.
In addition to the pressure of delivering a curriculum at extreme price/performance ratios,
the nature of instruction will be fundamentally different. The need to address sustainability issues
is particularly acute in bottom of the pyramid markets where intense population pressures are
met with a paucity of resources. Business education has started a transition to the explicit use of
sustainability as a curriculum foundation (see www.beyondgreypinstripes.org) and is advocated
as a key component of the markets of the future (Vos, 2005).
A résumé of the design parameters for global management education is suggested by
Prahalad (2006b) as comprising an “impossibly low-cost, high-quality new business model” (p.
1). The lists of parameters presented in Table 1 below are based on the Prahalad’s (2006a)
principles of innovation for bottom of the pyramid markets.
Creating and Delivering Business Education 6
Table 1: Design parameters for global education
Principle Importance for global management education
Price/performance relationships Management education in developing markets must be
designed to provide service at a cost to the student
substantially below that offered in developing countries.
Robust hybrid solutions for
difficult markets Educational delivery models must depart from the
traditional bricks and mortar world of college campuses.
Models that are simply an extension of the traditional,
developed-county university system will be inadequate.
Scalability in a dispersed market A design must dictate structures and methods to deliver
services across a range of countries, cultures, languages,
and technology infrastructures.
Efficient delivery models Educational delivery processes must be designed around
local infrastructure to meet local criteria of efficiency.
De-skilling work Educational service delivery in developing markets must be
done where there is a shortage of traditional educational
talent such as skilled professors.
Rapid evolution and adaptation The dynamics of emerging markets require a rapid
evolution and adaptation of techniques and approaches.
Curriculum and delivery methods cannot be locked in the
past but must instead adapt frequently.
(adapted from Prahalad, 2006a)
The design principles presented above tell of a far different picture for management
education in a global context from that existant models in developed countries. The overall focus
must illustrate a nimble, fast-afoot approach to adaptation, well adapted to a variety of local—
often hostile—infrastructures, yet operating at a cost to serve often thought impossible in the
developed countries.
B. Design Dimensions—Addressing the Learning Ecoscape
The need to deliver educational services for global market requires a framework for
design. The authors propose using a concept of design dimensions to address the principles
described above. Figure 1 shows the four key dimensions: stakeholders (S), resources (R),
structures (ST), and technology (T) based on a foundation proposed by Cooper, Fusarelli, and
Creating and Delivering Business Education 7
Randall (2004). The dimensions (SH, R, ST, and T) allow the design of learning services to fit a
learning ecoscape. Each learning dimension is defined in greater depth below.
Figure 1. Design dimensions of the learning ecoscape.
SH
ST
RT
SH
ST
RT
Stakeholders (SH) derive from a variety of internal and external interest groups, and
might include administrators, faculty, staff, students, parents, employers, and community
members. A typical view of leaning services has been to see students as customers, and as the
primary and often only stakeholder group. The increased global interconnectedness of societies
and economic activities, however, would indicate otherwise. Stakeholder insight, innovation, and
creativity help generate, maintain, and evolve curricula, outcomes. Learning outcomes are
important to corporations, governmental entities, and broader societal groups.
Cultural norms play a central role in determining acceptability of the many components,
structures, and processes of learning and associated services. For example, the ability to rely on
remote teaching modalities, such as online learning, may not be feasible when cultural norms
demand face-to-face contact, especially in a group setting. Efforts must be made to incorporate
stakeholders explicitly in design decisions for educational services.
Resources (R) implicated in learning services include but are not limited to humans and
tangible items, their allocation, development, replacement, and deployment. Other external
Creating and Delivering Business Education 8
structures might be implicated in the action or means of learning resources. For instance, societal
and business structures provide avenues to deliver and employ learning services. However, when
left unmonitored, these may impose barriers to learning services as well as impost restrictions on
the potential quality of services.
Technology (T) in a learning institution appears in multi-variable strata including human
skills, knowledge, and expertise (i.e., administrative, technical, and professional), and
equipment, machinery, and tools. The types and levels of these technologies can vary greatly in
different cultures or societies. In a learning ecoscape, exceptional learning depends on
appropriate technology, including all dimensions and processes identified by the stakeholders.
Assessing and monitoring the quality of internal and external technologies can help assure
quality-learning services. For example, one might assess external suppliers or bidders of internal
technologies for quality learning services.
Structure (ST) involves the institutions that exist in the environment that is the target of
the knowledge being delivered in the program. Management education and leadership should
take care to operate realistically within the structures and institutions which collectively form
global and regional markets.
C. The Curriculum Core—A Positive and Appreciative Management Curriculum
The ecoscape dimensions lend themselves to a management curriculum. The authors’
position is that such a curriculum must rest on concepts of sustainability. Figure 2 provides a
concept of how such a curriculum could be structured. The structure involves three layers from
the center to the outside: an appreciative leadership core, complementary instructional methods
and techniques, outcome areas, and finally the learning flow.
Creating and Delivering Business Education 9
Figure 2. Foundations of a Sustainable Management Curriculum.
Sustainable
Enterprise
(“Planet”)
Value to Business
(“Profit”)
Appreciative
Appreciative
Leadership
Leadership
Transforming
Whole Systems
Methods
Generative
Relationships
Self-Awareness
& Intentional
Change through
Emotional
Intelligence
Strategic
Structures
Coaching
Extraordinary
Performance
Personal
Growth
(”People”)
Designing
the Intelligent
Enterprise
Strength-based
Business As
Agent For
World Benefit
Sca n
Fo cu s
Act
Sca n
Fo cu s
Act
Sca n
focus
Act
Sustainable
Enterprise
(“Planet”)
Value to Business
(“Profit”)
Appreciative
Appreciative
Leadership
Leadership
Transforming
Whole Systems
Methods
Generative
Relationships
Self-Awareness
& Intentional
Change through
Emotional
Intelligence
Strategic
Structures
Coaching
Extraordinary
Performance
Personal
Growth
(”People”)
Designing
the Intelligent
Enterprise
Strength-based
Business As
Agent For
World Benefit
Sca n
Fo cu s
Act
Sca n
Fo cu s
Act
Sca n
focus
Act
(adapted from Fry & Wismer, 2006)
The center rests on the concept of appreciative leadership, which is a derivative concept
of appreciative inquiry (Ricchiuto, 2005; Srivastva, Fry, & Cooperrider, 1999). Ricchiuto (2005)
summarizes the concept as “engaging people in using their personal and collaborative
capabilities toward the sustainability of the organization” (p. 28). Appreciative leadership
theories represent a relatively recent entry into the plethora of leadership concepts and
approaches. Cooperrider and Sekerka (2003) suggest that leadership of an appreciative nature
must combine both inquiry into the appreciative along with strengthening relationships to others.
The second layer, strength-based methods, would follow the appreciative inquiry
approach of seeking the strengths in the learner and building from such strengths. This layer
allows for use of many of the techniques of appreciative inquiry engagements (see, e.g.,
Cooperrider, Whitney, & Stavros, 2003). The use of such hands-on approaches fits well with the
concepts of project-based or problem-based learning in management education (see, e.g., Rhodes
& Garrick, 2003; Coombs & Elden, 2004).
Creating and Delivering Business Education 10
The third layer contains representative outcomes of each phase of the educational
process. The first phase addresses personal growth with example outcomes indicative of
increased personal mastery. The second phase represents a shift to organizational levels of
ability. In this phase students would learn not only the traditional tools of management but also
the appreciative aspects of using those tools in an organizational setting. The final phase
addresses the needs of building a sustainable enterprise. This phase represents higher order
thinking about how the business organization operates in a sustainable fashion.
Each of the phases contain three key sub-phases: scan, focus, and act. This approach
represents an abbreviated sequence of appreciative inquiry used by one major consulting
company (Morel, 2001). In this sequence, scan refers to foundational activities that provide a
level setting for the participants. This phase is primarily equivalent to the discover and dream
phases of appreciative inquiry (Cooperrider et al., 2003). Focus entails a clarification of the
concepts and how they could apply in a particular situation. This series of activities is essentially
equivalent to the design phase of appreciative inquiry. Finally, Act refers to a solidification of
the efforts into implementation plans and is thus largely similar to the destiny phase of
appreciative inquiry.
The knowledge in each successive phase would build on the prior phases. Thus, for
example, the scan activities in the value to business phase builds on the enhanced personal
mastery developed in the prior stage. Similarly, the sustainable enterprise phase rests on lessons
learned in both the personal growth and value to business phases. The cycle is intended to
continue beyond the delivery of the curriculum and should become a cycle of life-long learning
after the learner has completed the curriculum at the educational institution.
Creating and Delivering Business Education 11
The curriculum core is centered within the design dimensions. This relationship is shown
in Figure 3. Logically, the content of the curriculum would require both adaptability for different
locations and cultures with changes over time. The issue of the business processes that support
ongoing curriculum and learning service (re-)design presents a further challenge, which is treated
in the next part of the discussion.
Figure 3. Depicition of design dimensions and core cirriculum relationships
SH
ST
RT
SH
ST
RT
SH
ST
RT
Creating and Delivering Business Education 12
IV. Delivering Management Education in the New Realities of Global Markets
To deliver global learning services the authors propose an approach incorporating an
educational process framework (EPF). The EPF shown in Figure 4 entails an array of end-to-end
processes defining the services provided by a learning enterprise. The EPF functions as a model
to manage learning design, delivery, and assessment within the learning ecoscape.
Figure 4. Depiction of an Educational Process Framework.
The EPF relies on the concept of business processes often used in business processes re-
engineering. In contrast to some efforts (see, e.g., Bruno, Vrana, & Welz, 1998) EPF is
comprehensive for the entire enterprise. The EPF is also structured to provide a holistic focus
beyond only administrative support processes and/or on the academic processes. It also explicitly
develops an entire process view with a mixed focus on inputs, process activities, and outcomes.
The focus on outcomes is a key element often missing in educational process design.
(Association of Colleges of Applied Arts and Technology of Ontario [ACAATO], n.d.).
Creating and Delivering Business Education 13
The 10 typical processes depicted in Figure 4 represent those of a typical but hypothetical
educational institution, which may be public or private. The exact nature and scope of an
institution’s process can vary depending on, for example, whether it is public or private, urban or
rural, centralized or decentralized. In addition, institutional emphases vary (e.g., teaching vs.
research), which thereby may produce different process configurations. The processes describe a
range of activities or services that take place in an educational institution. Each process is shown
with sub-process components (e.g., A1 Solicit application). In turn each of the sub-process can
be further broken-down into educational service activities. The services level of detail is beyond
the scope of this paper and will be developed by the authors in a subsequent publication.
The process framework depicts a from-to or and end-to-end process approach (e.g., E0
Curriculum to Outcomes). This portrayal defines the input (e.g., E0 curriculum) at the beginning,
the sub-processes in the center (i.e., the means), and the terminal output at the end (i.e., the
outcome) of each process. Hence, within each process there is a range of loosely coupled sub-
processes (e.g., E1, E2, etc.) For example, in the E0 Curriculum to Outcomes process there are
sequences of sub-processes E1 to E5, which represent groupings of services that could roughly
follow in sequence. The use of a flowchart depiction is avoided in depicting the sequencing as
not to imply a deterministic, linear precedence from one process and/or sub-process to the next,
which is not always the case in reality.
The processes can be loosely clustered into broader categories, which relate to particular
strategies or parts of an organization. Processes A0 and B0 can be grouped into enrollment
horizontal strategy and would relate to an enrollment department or function. Processes C0 and
D0 represent a later portion of the student lifecycle. Process E0 represents the strategies and
organizational units associated with the development of degree programs. Processes F0 to G0
Creating and Delivering Business Education 14
provide detail regarding the elements of strategic management. Finally, processes H0 to J0
include administrative, or support services. The processes and their components found with the
model EPF in this essay are not all-inclusive. For example, health, safety, student associations,
purchasing, warehousing, and diversity may also be considered as processes or components of
processes.
The approach to processes represents the influence of Sheer (1998) to categorization of
processes. Processes A0 to D0 represent logistics processes or, in other words, processes relating
to the acquisition of customers and delivery of results. Process E0 represents an innovation
element equivalent to that described by Scheer as product development. Processes F0 to J0 fall
into Sheer’s information and coordination process groups. Professor Scheer’s process approach
has been chosen in preference to that described by Latham and Vinyard (2005) because it places
primary focus clearly on the operational and innovation realities of the business as elements to
fulfill strategy. In the authors’ estimation, the approach advocated by Latham and Vinyard
focuses more on a determination of strategy in absence of the operational realities of the
enterprise.
The EPF can be used to implement strategy in two primary ways. First, the framework
provides a blueprint for the organization. The clusters of processes align with the core and
secondary strategies to provide a technique to create an organization to operationalize strategy.
Second, a process-focused approach lends itself to development of dynamic performance
measures used to determine quality, e.g., efficiencies, adequacies, and equalities (ACAATO,
n.d.). For each process, key performance indicators (KPIs) can be developed to measure the
performance of individuals, groups, resources, and service using inputs, process functionality,
and outputs of sub-processes within the process. Such techniques entail a process-based quality
Creating and Delivering Business Education 15
measurement approach (Chua, 2004; DiNauta, Omar, Schade, & Scheele, 2004; Owilia &
Aspinwall, 1996). KPIs also should be structured to represent different organizational levels
(e.g., administrative, professional, and staff) as well as different stakeholder groups,
organizational culture, and technology requirements. Measures should be progressively
compared within and between similar institutions for quality assurance.
The EPF can be configured to represent a range of learning ecoscape comprised of the
four key dimensions: (a) stakeholders – vision, values, beliefs, and needs (b) resources - a broad
holistic services and resources (c) legitimacy - to lead and manage, (d) technology - appropriate
(Cooper et al., 2004, p. 44). The adaptability allows the design of various delivery models, which
is well suited to the demands and needs of global educational service delivery. The depiction
above is at a summary level. Several additional levels of detail are required to implement the
EPF in any given situation.
V. Conclusion: Future research recommendations
Tertiary education is rapidly transitioning from a domestic business to one that is globally
located and traded as trans-national services. Those services will be provided in markets that are
much more demanding than in developed countries. This transition will demand a move from
traditional learning approaches. Current literature and practice do not provide a systematic
approach to the design, delivery, and management of trans-national learning services.
The article above has presented a range of topics on the use of learning ecoscapes as a
way to develop an appreciative curriculum in a globally differentiated learning model. The
discussion also provided basic details of an educational process framework (EPF) model as a
basis for the delivery and management of trans-national learning services. Taken as a whole the
Creating and Delivering Business Education 16
design dimensions, the positive and appreciative management curriculum, and the process
framework provide a theoretical foundation that will require additional validation and research in
a number of areas.
The authors propose three additional lines of inquiry and research specifically in the area
of global management education serving the needs sustainable business models:
1. The validation of the design dimensions in various cultural and country settings.
2. The efficacy and effectiveness of the Positive and Appreciative Management
Curriculum to develop high performance leaders for sustainable business in a global
context.
3. The validation of the educational process framework as an operational blueprint in a
variety of variety of management educational settings differentiated by region,
culture, and country.
The authors would appreciate contributions from fellow researchers. The form of future
research could take a number of forms including case study, action research, or grounded theory.
The authors are confident that the topic represents a pressing issue as globalization enters a new
phase requiring solutions to alleviate poverty and share the fruits of economic success more
broadly.
Creating and Delivering Business Education 17
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MBA EFFECTIVENESS IN NON-OECD COUNTRIES:
PERCEPTIONS OF LEADERSHIP AND MANAGERIAL SKILLS
by
Douglas J. Gilbert
A Dissertation Presented to the Faculty in Partial Fulfillment
of the Requirements for the Degree
Doctor of Business Administration
University of Phoenix
Phoenix, Arizona
December 2009
Effectiveness of MBA Curriculum iii
© 2009 by Douglas J. Gilbert
Year of Graduation 2009
All Rights Reserved
MBA skill sets description and survey © 2006 Lynn M. Brooks.
Used with permission.
MBA Effectiveness in non-OECD Countries iv
ABSTRACT
The purpose of this quantitative comparative methods research was to compare the perceptions
relative to 12 Master of Business Administration (MBA) skill sets of respondents situated in non-
member countries of the Organisation for Economic Cooperation and Development (OECD)
with the findings of a prior study of United States situated respondents. The findings suggest that
general agreement of United States situated MBA program directors and non-OECD situated
MBA program directors on the ratings of importance of the MBA skill sets. Non-OECD MBA
program directors, however, tended to rate the effectiveness of MBA programs in developing the
skill sets somewhat lower than United States based MBA program directors. The perception of
corporate recruiters of MBAs for both importance of MBA skill sets and effectiveness showed
consistency in nearly all of the 12 skill sets. An examination of the significance of differences
among three subgroups of non-OECD respondents—MBA program administrators, recruiters,
and MBA graduates—demonstrated a high level of consistency of ratings of importance of MBA
skills sets and effectiveness of MBA programs. A further analysis using an importance-
effectiveness methodology identified patterns of differences in perceived needs for improvement
among the non-OECD MBA program administrators, recruiters, and graduates.
Recommendations are made for further study including an examination of models for MBA skill
sets definition to include additional dimensions or domains explicitly focused on contextual
elements, such geographic differences in business practices and cultural elements.
MBA Effectiveness in non-OECD Countries v
ACKNOWLEDGEMENTS
This dissertation represents a milestone along a path winding its way through several
countries over a 20 year period. For the concepts of the value of an MBA and its potential in
developing countries, I owe a debt of gratitude to Dr. Hanns Blasius, retired MBA program
director at Schiller International University, Strasbourg, France. Hanns and I spent countless
hours over dinners at La Cour des Chasseurs in La Wantzenau discussing the themes of the
global character of MBA skills interwoven throughout this study. For the source of the
methodology and its appropriate use, I must thank Dr. Sandra Vandermerwe currently of
Imperial College in London. While she was at the Institute for Management Development (IMD)
in Lausanne, Switzerland, Sandra and I co-authored two articles, which served as a basis for the
statistical methodology of this study.
The concepts developed in chapter 5 were the result of a convergence of influences
including the many discussions with Hanns Blasius and teaching international MBA students for
18 years in Strasbourg. A cornerstone to the chapter 5 concepts was developed through a range
of conversations over the years with the late Dr. Walter Leibrecht, President of Schiller
International University. Walter was keen on the benefits of education for developing countries
and the potential for management education in the developing world. A recent but very powerful
influence has been the work of Salem International in Stadtsteinach, Germany, which has
enlightened my understanding of sustainable enterprises in the developing world. Special thanks
go to Dr. Thom Hartmann for leading me to the Salem International organization.
Finally, no acknowledgement could be complete without mention of those providing the
much-needed support and technical assistance. Support was never lacking from my wife, Cheryl
Schuessler, and our children André and Danielle, none of whom ever had a doubt that I would
MBA Effectiveness in non-OECD Countries vi
finish this project, despite my frequent consternation at the process. Within the University of
Phoenix environment one always needs to mention the support of learning team members, who
have included Dr. George Love, Dr. Ken Goldsmith, Dr. Linda Ditchkus, and (soon to be) Dr.
Franzi Walsh. Special thanks as well to Dr. Rob Olding for his able and sane assistance with
statistics. My mentor, Dr. Kat Barclay, deserves special mention for her technical support
through the dissertation process. A final special thanks also goes to the other members of my
dissertation committee, Dr. Carla Kuhlman and Dr. Don Munday.
MBA Effectiveness in non-OECD Countries vii
TABLE OF CONTENTS
ABSTRACT ................................................................................................................................... iv
ACKNOWLEDGEMENTS ............................................................................................................ v
TABLE OF CONTENTS .............................................................................................................. vii
LIST OF TABLES .......................................................................................................................... x
LIST OF FIGURES ...................................................................................................................... xii
CHAPTER 1: INTRODUCTION ................................................................................................... 1
Background ................................................................................................................................. 4
Problem Statement ...................................................................................................................... 7
Purpose of the Study ................................................................................................................... 8
Significance of the Study to the Academic Field ..................................................................... 11
Significance of the Study to the Field of Leadership ................................................................ 12
Nature of the Study ................................................................................................................... 13
Research Questions/Hypotheses ............................................................................................... 16
Conceptual/Theoretical Framework ......................................................................................... 20
Summary: MBA Skills Sets and Global Poverty Alleviation through Market-based
Development ........................................................................................................................ 26
Definition of Terms .................................................................................................................. 26
Assumptions .............................................................................................................................. 29
Scope and Limitations of the Study .......................................................................................... 29
Delimitations of the Study ........................................................................................................ 31
Summary ................................................................................................................................... 32
CHAPTER 2: REVIEW OF THE LITERATURE ....................................................................... 34
Documentation .......................................................................................................................... 35
Framework 1A: MBA Skill Sets and Traditional MBA Curriculum Theories ......................... 37
Framework 1B: MBA Skill Sets and Knowledge Management ............................................... 51
Framework 2A: MBA Skill Sets, Economic Development, and Poverty Alleviation .............. 55
Framework 2B: MBA Skill Sets as Globally Traded Educational Services ............................. 61
Conclusion ................................................................................................................................ 66
Summary ................................................................................................................................... 66
CHAPTER 3: METHODOLOGY ................................................................................................ 68
MBA Effectiveness in non-OECD Countries viii
Quantitative Research Design ................................................................................................... 70
Appropriateness of Design ........................................................................................................ 75
Appropriateness of the Questionnaire Design ..................................................................... 76
Appropriateness of the Quantitative Methods ..................................................................... 76
Appropriateness of the Importance-Effectiveness Design ................................................... 77
Research Questions ................................................................................................................... 78
Population ................................................................................................................................. 82
Sampling Frame ........................................................................................................................ 83
Confidentiality and Informed Consent ..................................................................................... 85
Geographic Location ................................................................................................................. 86
Instrumentation ......................................................................................................................... 87
Data Collection ......................................................................................................................... 87
Quantitative Data Analysis ....................................................................................................... 88
Validity and Reliability ............................................................................................................. 89
Summary ................................................................................................................................... 90
CHAPTER 4: RESULTS .............................................................................................................. 91
Findings .................................................................................................................................... 91
Summary ................................................................................................................................. 116
CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS .............................................. 119
Conclusions ............................................................................................................................. 119
Conclusions Regarding Brooks vs. Non-OECD Survey Group Differences ..................... 119
Conclusions Regarding the Inter-group Differences Among the non-OECD Respondents
....................................................................................................................................... 122
Conclusions Regarding the Importance-Effectiveness Ratings ......................................... 123
Recommendations ................................................................................................................... 125
A Competency Dimension Model of MBA Skill Sets ....................................................... 125
The Competency Dimension Model Compared to Brooks’ MBA Skill Sets .................... 129
Implications for the Field of Leadership ............................................................................ 130
Implications for Further Academic Research .................................................................... 131
Implications for Practitioners ............................................................................................. 132
Summary ................................................................................................................................. 133
MBA Effectiveness in non-OECD Countries ix
REFERENCES ........................................................................................................................... 134
APPENDICES ............................................................................................................................ 153
APPENDIX A: LITERATURE MAP .................................................................................... 153
APPENDIX B: INFORMED CONSENT ............................................................................... 154
APPENDIX C: SURVEY INSTRUMENT ............................................................................ 155
APPENDIX D: CONSENT TO USE SURVEY INSTRUMENT.......................................... 169
MBA Effectiveness in non-OECD Countries x
LIST OF TABLES
Table 1. Goals of MBA Schools Ranked by Executives and Educators ........................................ 42
Table 2. GMAC Work Domains and MBA Competencies ............................................................ 45
Table 3. Fifteen Business Goals Studied Across 21 County/University Groups .......................... 50
Table 4. Market Size for Base of the Pyramid Markets ................................................................ 56
Table 5. GATS Mode of Supply for Services ................................................................................. 64
Table 6. MBA Skill Sets ................................................................................................................. 73
Table 7. Respondents to non-OECD MBA Skills Survey .............................................................. 92
Table 8. Institution Type of MBA Program Administrators ......................................................... 92
Table 9. Distribution of Corporate Responses by Industry .......................................................... 93
Table 10. Distribution of MBA Graduate Respondents by MBA Program Type .......................... 93
Table 11. Physical Location of Non-OECD Respondents ............................................................ 95
Table 12. Respondents Located in OECD Countries Indicating Non-OECD Experience ........... 96
Table 13. Academic Respondent Statistics for Perceptions of Importance of MBA Skill Sets ..... 98
Table 14. Recruiter Respondent Statistics for Perceptions of Importance of MBA Skill Sets .... 100
Table 15. Academic Respondent Statistics for Perceptions of Effectiveness of MBA Programs 102
Table 16. Recruiter Respondent Statistics for Perceptions of Effectiveness of MBA Programs 104
Table 17. Descriptive Statistics for Non-OECD Respondents on Importance of MBA Skill Sets
................................................................................................................................................ 106
Table 18. Levene’s Test for Equality of Variances for Non-OECD Respondents on Importance of
MBA Skill Sets ........................................................................................................................ 107
Table 19. Academic vs. Recruiter vs. MBA Graduate views of Importance of MBA Skill Sets .. 107
MBA Effectiveness in non-OECD Countries xi
Table 20. Descriptive Statistics for Non-OECD Respondents on Effectiveness of MBA Programs
in Developing MBA Skill Sets ................................................................................................ 110
Table 21. Levene’s Test for Equality of Variances for Non-OECD Respondents of MBA
programs in Developing MBA Skill Sets ................................................................................ 111
Table 22. Academic vs. Recruiter vs. MBA Graduate Views of MBA Programs in Developing
MBA Skill Sets ........................................................................................................................ 111
Table 23. Summary of Significant Differences by Hypothesis .................................................... 116
Table 24. Non-OECD MBA Skill Sets by Importance-Effectiveness Quadrant .......................... 117
Table 25. Alignment of MBA Skill Sets with MBA Competency Dimensions ............................. 129
MBA Effectiveness in non-OECD Countries xii
LIST OF FIGURES
Figure 1. Importance effectiveness analysis grid. ........................................................................ 72
Figure 2. Comparison of Academic Means for Perceptions of Importance of MBA Skill Sets .. 98
Figure 3. Comparison of Recruiter Means for Perceptions of Importance of MBA Skill Sets .. 100
Figure 4. Comparison of Academic Means for Perceptions of Effectiveness of MBA Programs
................................................................................................................................................ 102
Figure 5. Comparison of Recruiter Means for Perceptions of Effectiveness of MBA Programs
................................................................................................................................................ 104
Figure 6. Comparison of Means for Perceptions of Importance of MBA Skill Sets .................. 108
Figure 7. Comparison of Means for Perceptions of Effectiveness of MBA Programs by MBA
Skill Set .................................................................................................................................. 112
Figure 8. Importance-Effectiveness Grid for MBA Skill Sets for Non-OECD MBA Program
Director Respondents ............................................................................................................. 113
Figure 9. Importance-Effectiveness Grid for MBA Skill Sets for Non-OECD MBA Corporate
Recruiter Respondents ........................................................................................................... 114
Figure 10. Importance-Effectiveness Grid for MBA Skill Sets for Non-OECD MBA Corporate
Recruiters Respondents .......................................................................................................... 115
Figure 11. Total Skill Sets by Importance-Effectiveness Quadrant ........................................... 123
Figure 12. MBA dimensional competency model. ..................................................................... 127
Figure 13. Flowchart of web survey logic. ................................................................................. 155
MBA Effectiveness in non-OECD Countries 1
CHAPTER 1: INTRODUCTION
During the 1999 World Economic Forum in Davos, Switzerland, UN Secretary General
Kofi Annan introduced the United Nations Global Compact as a new paradigm for the role of
business in developing economies (Thérien & Pouliot, 2006). A key element of the new
paradigm was the central role of multinational business in global poverty alleviation through
market-based economic development. The notion of poverty alleviation through market-based
economic development was also emphasized by the World Trade Organization (WTO), which
has been engaged in ongoing multilateral trade negotiations under the Doha Development Round
(World Trade Organization [WTO], n.d.). Central to the Doha round of negotiations is the role of
trade in services, including educational services, for sustainable development in lesser and least
developed countries (Sampson, 2005). Improvement of educational levels, including post-
secondary (or tertiary) business education, such as the Master of Business Administration
(MBA) has been seen as inextricably linked to economic development and poverty alleviation
(Zhai & Hertel, 2005).
Developing countries comprise nearly 70% of the world’s population and represent
significant existing and potential consumer and product markets (Hammond, Kramer, Katz,
Tran, & Walker, 2007). The bulk of the population in such countries lives on less than $2 per day
and have been depicted collectively by Prahalad (2006, 2010) as “bottom of the pyramid
markets” or “BOP markets” (p. 4). A similar description by Hammond et al. (2007) depicted
these markets as “base of the pyramid markets” (p. 13). The collection of countries comprising
developing markets can be approximated by non-membership in the Organisation of Economic
Co-operation and Development (OECD), with non-members considered developing markets
(Hse, Luo, & Chao, 2008). Market dynamics in such countries comprising large BOP markets
MBA Effectiveness in non-OECD Countries 2
have been described as requiring markedly different approaches to business, in contrast to
prevailing business and economic models of multinational corporations in high-income countries
(Maxwell, 2009; Millstein, London, & Hart, 2009; Sachs, 2005).
When focusing on education, the percentage of the world’s population situated in
developing countries has not been commensurate with access to quality higher education and its
benefits for market-based poverty alleviation. Potential students in developing countries have
had limited access to quality higher-education programs (International Bank for Reconstruction
and Development [IBRD], 2000). Increased levels of tertiary education have been correlated
with increased economic development by fostering income growth, improving leadership quality,
and increasing the technical and managerial skill base of the population (Wolf, 2004; Zhai &
Hertel, 2005).
The MBA, a tertiary degree, has long been recognized as representing a defining
qualification for business leadership (Crainer & Dearlove, 1999; Daniel, 1998). Despite the
promise of tertiary education to market-based economic development, the preeminence of the
MBA as a managerial and leadership qualification of enterprise, and the need for managerial
talent in developing countries, the MBA degree has not gained a commensurate presence and
recognition in developing countries (Naidoo, 2007; Newell, 1999).
The existence of large, underserved markets coupled with the developmental benefits of
higher education such as the MBA indicate a need for greater access to higher education in
developing countries (IBRD, 2000). The paucity of MBA programs in developing countries
appears to go beyond higher education system deficiencies and raises questions about whether
the availability of management and business education curricula have kept pace with
globalization trends (Cabrera & Bowen, 2005). The disproportionately low incidence of graduate
MBA Effectiveness in non-OECD Countries 3
business programs in developing countries, including the MBA, when compared to market
opportunities suggested a lack of focus on developing “globally responsible leaders who think
critically, holistically, and reflectively” (European Foundation for Management Development
[EFMD], 2005, p. 36).
The low incidence of MBA programs in developing countries exposes lingering doubts
about the relevance of MBA programs and management education in a global economy of
significant emerging markets. Approaches to management education attract additional criticism
because they have lacked relevance in a globalized economy of interconnected stakeholders
(Bennis & O'Toole, 2005; Ghoshal, 2005). Mintzberg (2009) noted that successful managers
exhibit an ability to understand nuances of various parts of the global in a worldly view.
Traditional management programs are seen as ill equipped to deliver on the goals of “people,
profits, and planet,” which are seen as central to sustainable economic development (Zwetsloot,
2003, p. 201). Popularity rankings of MBA programs by the business press do not ensure
exposure to the most relevant managerial competencies (Rubin & Dierdorff, 2009). The business
and leadership skill sets required for the large developing markets and the ability of existing
MBA programs to deliver skill sets is an area in need of further research.
MBA Effectiveness in non-OECD Countries 4
Background
Until the 20th century, management and business education in the United States
comprised predominately apprenticeships, proprietary business schools, and trade schools
(Daniel, 1998). Throughout the 20th century, business education evolved to a professional level
with the MBA degree as a seminal qualification (Copeland, 1958; Daniel, 1998). At the
beginning of the 21st century, business was confronted with expectations that business leaders
assume broader responsibilities for environmental issues as well as social and economic
development (Oppenheim, Bonini, Bielak, Kehm, & Lacy, 2007).
The historical importance of the MBA as a business leadership qualification highlights
the need for additional analysis about whether MBA curriculum produces skills relevant to a
global economy in an era of increased globalization and social responsibility (Association to
Advance Collegiate Schools of Business [AACSB], 2005). The ability of United States-based
domestic MBA programs to prepare graduates with relevant workforce skills in a global
economy has been questioned (Ferketich, 1998; Friga, Bettis, & Sullivan, 2003). MBA graduates
entering the domestic United States economy are seen to have significant skills gaps in essential
quantitative, analytical, and technical areas (Graduate Management Admission Council
[GMAC], 2005a; Pfeffer & Fong, 2002). Other identified skill deficiencies include collaboration,
cross-cultural communication, and a global perspective (Barrett & Beeson, 2000).
The traditional learning model of MBA programs emphasizes analytical skills, frequently
at the expense of interpersonal and wisdom skills (Greiner, Bhambri, & Cummings, 2003;
Pfeffer & Fong, 2002). Key areas such as process skills, essential to long-term success in
business, are areas of deficiency in standard MBA programs (Jones, 2002; Mintzberg, 2005).
Standard United States-based MBA curriculum may not be delivering required workforce skills
MBA Effectiveness in non-OECD Countries 5
and competencies for the domestic United States market, let alone a multi-cultural global
economy (AACSB, 2005; Friga, et al., 2003; Hammond, et al., 2007). Furthermore, domestic
United States concerns and doubts about MBA skill sets may reflect similar concerns about the
usefulness of MBA skill sets in BOP markets.
In a mixed methods comparative study, Brooks (2006) examined the area of typical
United States-based, domestic MBA curriculum to determine if a sample of corporate recruiters
of MBA graduates and a sample of MBA program directors differed with respect to the
following:
a) the internal and external challenges facing twenty-first century corporations, b) the
most important skills MBA graduates will require to address those challenges, c) the
effectiveness of MBA programs in developing those skills in their graduates, noting
potential gaps in the MBA curriculum, and d) possible strategies to resolve those gaps (p.
6).
The quantitative comparative approach used by Brooks was focused on issues of relevance of
MBA programs in the United States. Given the generalized recognition of the globalization of
markets, rapid growth of developing and BOP markets, and the increasingly interconnected
business world, an examination of the same variables in an international, developing-country
context offered a useful basis for analysis. Such research can help determine the extent to which
MBA skills sets, which are seen as desirable in the United States, retain their desirability in the
context of developing economies and markets.
Brooks’ (2006) method was loosely based on importance-performance analysis, first
introduced by Martilla and James (1977). Instead of importance-performance Brooks changed
the analysis to represent importance of attributes and effectiveness of providers in developing
MBA Effectiveness in non-OECD Countries 6
skills. Such a method has been widely used to generate two-dimensional Cartesian action grids
suggestive of levels of needed resource commitment: emphasis needed, potential under
resourcing, potential over resourcing, and low emphasis (Huan & Beaman, 2007; Kitcharoen,
2004). Vandermerwe and Gilbert (1991) developed a comparative quantitative approach using
clustering of results on the Cartesian action grid and inferential statistics to test for similarity in
different populations sub-sets when rating the same importance and performance attributes. The
Vandermerwe and Gilbert method, used in the present research study under the name
importance-effectiveness analysis, involves devising a grand mean for each set of variables and
then plotting the variance from the mean as the position on the Cartesian plot.
In the present research study, the word curriculum is used as a collective noun to denote
the program approaches existing in MBA programs. The use of curriculum to denote a collection
of elements that form MBA programs is consistent with the concept of a collective noun as noted
by Sabin (2005). Garner (2003) stated that the noun properly takes the form of a collective when
a noun is used to refer to an "aggregate of individuals or things" (p. 157). Garner also provides
the example of curriculum used to describe a collection of subjects such as a “medieval
curriculum, consisting of arithmetic, geometry, astronomy, and music” (p. 661). The use of
curriculum as a collective noun was preferred in the present research study to provide theoretical
clarity that the study dealt with the MBA as an aggregated curriculum and not with business
school programs individually as a variety of curricula. As shown in chapter 2 of the present
research study, since the time of the reports of the Ford Foundation (R. A. Gordon & Howell,
1959) and the Carnegie Corporation (Pierson, 1959), the MBA has been viewed as a singular
collection and may be referred to properly as a collective noun, curriculum.
MBA Effectiveness in non-OECD Countries 7
Problem Statement
Mintzberg (2004), Bennis and O’Toole (2005), and Ghoshal (2005), leading managerial
theorists, raised generalized concerns about the perceived relevance of MBA curriculum in
developing relevant skill sets for business leadership in an increasingly globalized world
economy. A wider range of authors has joined the debate from the perspective of the relevance
of business education in general in a globalized world (Chia & Holt, 2008; Grey, 2004, 2005;
Khurana, 2007; Starkey, Hatchuel, & Tempest, 2004; Vermeulen, 2005). The perceived
importance of defined MBA skill sets and efficacy MBA programs in development of those
skills for a global market has been examined for the United States-based programs (Brooks,
2006). There is a need to examine the perceived importance of those defined MBA skill sets and
program efficacy in a context outside the United States and in particular situated in developing
economies, which comprise 70% of the world’s population, form the bulk of the lesser and least
developed countries and markets in the world, and are viewed as significant BOP markets
(Hammond, et al., 2007).
The problem addressed by the proposed research is a concern about the perceived
relevance of current MBA curriculum as an effective contributor to overall business skills for
developing the required managerial and leadership skills for employers situated in non-OECD
countries. The MBA often has been seen as synonymous with the highest level of business
management and leadership skill (Mintzberg & Gosling, 2002). Market-based managerial and
leadership skills can be seen as critical for private sector development activities to operate and
address poverty in BOP markets, estimated at nearly four billion individuals (Hammond, et al.,
2007; Sachs, 2008). Despite the value-added potential of MBA skill sets, the relevance of the
MBA Effectiveness in non-OECD Countries 8
skill sets is questioned with respect to bottom of the pyramid markets (Hammond & Prahalad,
2004).
The quantitative comparative methods study contains an examination of perceptions of
corporate recruiters, MBA program administrators, and MBA graduates in non-OECD countries,
which are seen as broadly representative of developing countries (Hse, et al., 2008). The MBA
skill sets forming the basis of the proposed inquiry were derived from MBA skill sets defined by
Brooks (2006) and presented a more fully defined range of skills than that used by the GMAC
for surveying corporate recruiters (GMAC, 2005a, 2007a). A survey of MBA program
administrators, corporate recruiters of MBA graduates, and MBA graduates in non-OECD
countries (considered representative of developing economies) constituted the sample for the
present study, reflecting an appropriate use of the method and design of Brooks. The published
instrument designed by Brooks to capture perceptions was used to establish the relative
importance of 12 MBA leadership and managerial skills as well as the effectiveness of MBA
programs in delivering graduates with those skills.
Purpose of the Study
The purpose of quantitative comparative methods research was to compare the findings
of Brooks (2006) about the perceived importance of MBA skill sets and the effectiveness of
MBA programs in the United States to the same in non-OECD countries, which were seen as a
proxy for developing countries. The population sampled by Brooks was United States-based and
comprised MBA program directors and corporate recruiters of MBA graduates. Brooks
examined the significance of differences between the perceptions of the importance of 12 MBA
skill sets between United States-based MBA program directors and corporate recruiters of MBA
graduates. Brooks also examined the difference in perceptions between United States-based
MBA Effectiveness in non-OECD Countries 9
MBA program directors and corporate recruiters of MBA graduates with respect to the
perception of effectiveness of MBA programs in developing 12 MBA skill sets. In this study, the
Brooks study results were compared to those from non-OECD respondents to determine whether
there was a significant difference between perceptions of the importance of the 12 MBA skill
sets as well as the effectiveness of MBA program curriculum between the United States-based
population in Brooks’ study and a population situated in developing countries, represented by
being situated in non-OECD countries. In addition, the study performed inter-group comparisons
examining potential significant difference in perceptions of MBA curriculum among MBA
program directors, corporate recruiters of MBA graduates, and MBA graduates situated in non-
OECD countries.
Responses from survey respondents who are situated in non-OECD countries were
examined and compared to the data collected from Brooks’ (2006) respondents about their
perceptions of the importance of the same 12 MBA skill sets as well as MBA-program
effectiveness. The independent variable was the location of the respondent as either living in the
United States (from the Brooks study) or a non-OECD country (respondents in this study). The
dependent variable was measured as a function of responses to a Likert-type scale indicating
measures the degree of agreement with a statement that describes the importance of 12 MBA
skills in the first part of the question and the effectiveness of the MBA program in developing
the same 12 MBA skills in the second part of the question.
This study used a quantitative comparative methods design based on importance
performance analysis (IPA), a classification technique developed by Martilla and James (1977)
to demonstrate relationship of paired perceptions of importance and performance with respect to
defined sets of service attributes. Such a design is appropriate to test perceptions of importance
MBA Effectiveness in non-OECD Countries 10
of service attributes and the efficacy of service delivery relative to the same attributes
(Vandermerwe & Gilbert, 1991). In this study, the attribute set consisted of defined MBA skill
sets. The IPA design has been specifically used in the context of assessing skill sets developed
using a curriculum (Alberty & Mihalik, 1989) and is seen as appropriate to this study.
A quantitative method using a survey was chosen because such methods are an
appropriate non-intervention approach suitable to describe population characteristics and
preferences (Creswell, 2008). The appropriateness of the design is further illustrated by the use
of a similar survey by the GMAC (2005a). Furthermore, the types of survey measurement scales
used in this study were appropriate to provide comparative analysis. Alreck and Settle (2004)
suggested that the Likert-type scale responses, or the dependent variables in this study, when
assigned a numerical value, are suitable to describe perceptive reactions. Alreck and Settle
further noted that in designs where the independent variables are categorical and the dependent
variables are numeric, t-tests and analysis of variance methods are appropriate to determine
association between different samples or sample groups.
The quantitative methodology used in the present study consisted of a validated survey
instrument using Likert-scaled questions. The design of the analysis included a three-part
technique. First, the mean values from the Brooks (2006) population sample for each of the 12
MBA skill sets were compared pair-wise by skill, Brooks versus the non-OECD population, to
ascertain whether there were significant differences between the Brooks sample and the present
study sample in the importance and effectiveness perceptions, respectively. Second, an analysis
of variance was performed for the responses from the non-OECD respondents to determine if
there was a significant difference among non-OECD MBA program administrators, recruiters,
and MBA graduates in terms of perceptions of importance as well as MBA program
MBA Effectiveness in non-OECD Countries 11
effectiveness with respect to each of the 12 MBA skill sets. Last, the mean values of the
importance and effectiveness ratings were plotted on a Cartesian grid, illustrating clustering of
perceptions relative to attribute sets (the importance-effectiveness grid). Brooks used both the t-
test and analysis of variance methods in her analysis. The importance-effectiveness analysis was
also used by Brooks and was validated by Alberty and Mihalik (1989) as an appropriate
technique with respect to the measurement of educational program efficacy in the context of skill
sets developed by a curriculum approach.
Significance of the Study to the Academic Field
Management education, and specifically MBA programs, have come under renewed and
increased criticism in the past decade about their relevance to United States-based domestic
employers (Ghoshal, 2005). The doubts about MBA curriculum efficacy come at a time when the
global economy is changing due to the focus on BOP markets with nearly four billion consumers
(Hammond, et al., 2007). The concerns about MBA program relevance and efficacy come at a
time when the degree is poised to spread to a broader range of countries, given the growth in
international trade in higher educational services (Knight, 2003). Furthermore, with the decline
in international agencies’ abilities to address global poverty, education is perceived as a preferred
method of poverty alleviation because of its ability to attract direct foreign investment and
develop a skilled labor force (Miche, 2002; Saner & Fasel, 2003). The current study has sought
to contribute to the body of knowledge about the needs for business graduates, and MBA
graduates in particular, by virtue of the non-OECD location of the respondents. The findings may
help to illuminate what MBA and business skill sets are required for poverty alleviation in
developing countries.
MBA Effectiveness in non-OECD Countries 12
Significance of the Study to the Field of Leadership
Leadership abilities form an integral and central part of the expected skills of executives
completing MBA qualification. GMAC (2005a) lists leadership skills explicitly as one of the
core competencies of management education, along with related skills such as decision making,
implementation, and adaptability. Building a stronger understanding about the needed and
desired leadership abilities suitable for developing economies presented an area of contribution
to the study of leadership theory. Through the empirical data set developed in the study, there is
a basis to examine whether differences in leadership models are justified for non-OECD
countries. Leadership theories alone may provide some interesting insights but often lack
practical relevance or applicability in a business environment (Khurana, 2007). Understanding
MBA leadership skills in relation to other MBA skills may assist with the development of
contextual relationships for leadership skills by those designing and teaching MBA curriculum
specific to non-OECD countries. Finally, any differences in perceptions of required MBA
leadership skills between domestic United States-based responses (Brooks, 2006), and the
proposed respondents located in non-OECD countries can inform understandings of the
geographic differences in perceptions and requirements of needed MBA leadership skills.
The present research study also addressed other important aspects for examining new
leadership aspects of MBA studies. Khurana (2007) asserted that leadership as an element of
business studies is a requisite component of management as a profession. As noted by Berry
(1997), traditional models of business in the United States may be less relevant in the developing
world. The aim of the study was to begin an identification of any differences in required
leadership skills in MBA curriculum driven by the societal and economic realities in developing
markets. As discussed by Buckley, Salazar-Xirinachs, and Henriques (2009), Christiansen,
MBA Effectiveness in non-OECD Countries 13
Peirce, Hartman, Hoffman, and Carrier (2007), and Roome (2005), corporate social
responsibility (CSR) and sustainability have strong and growing focus in the context of
developing economies and are increasingly seen as core to the future of leadership in business.
Such concepts echo the thoughts of Hawken (1993), who noted that business must be key to the
solution of global poverty alleviation “because no other institution in the modern world is
powerful enough to foster necessary changes” (p. 17). As noted by Prahalad (2006, 2010), CSR
and sustainability are integral aspects of effective business leadership in emerging global
markets.
Nature of the Study
The nature of the quantitative comparative and non-experimental study was to identify
relationships of difference between two sets of respondents with respect to their perceptions of
the importance of 12 MBA skill sets as well as their perceptions of 12 MBA-program
effectiveness in developing those skills. In the present research study, responses from survey
respondents who are located in non-OECD countries were examined and compared to the data
collected from Brooks’ (2006) respondents about their perceptions of the importance of the same
12 MBA skill sets as well as MBA-program effectiveness. In the comparison with the Brooks
data, the independent variable was the location of the respondent as either living in the United
States or a non-OECD country. The dependent variable was measured as a function of responses
to a Likert-type scale indicating measures the degree of agreement with a statement that
describes the importance of 12 MBA skills in the first part of the question and the effectiveness
of the MBA program in developing the same 12 MBA skills in the second part of the question.
The study employed comparative quantitative methods both to describe and allow
inferences of a population’s characteristics and preferences (Creswell, 2008) and replicated
MBA Effectiveness in non-OECD Countries 14
similar research efforts to those of the GMAC (2005a) to assess perceptions of MBA skill needs
and the efficacy of MBA programs in providing graduates with those skills. The study involved a
self-administered, web-based quantitative instrument profiling specific MBA skill sets. The
questionnaire instrument is based on the 2005 GMAC Recruiters’ Survey as modified by Brooks
(2006, p. 42). The independent variable in the proposed study was the location of the individuals
completing the survey; the dependent variables were the respondents’ perceptions of the
importance of MBA skill sets and the effectiveness of MBA programs in developing the skill
sets.
A quantitative design was preferable to a qualitative design given the subject of the
research and the geographic location of the population studied. Trochim and Donnelly (2007)
argued that quantitative analysis is preferable when qualitative perceptions can be coded as
quantitative data. The 12 MBA skill sets defined by Brooks (2006) provided the ability to
capture qualitative perceptions using quantitative coding and therefore present a case for the use
of quantitative instead of qualitative methods. Many qualitative methods have relied on methods
which would be cumbersome or difficult to administer given the geographic dispersion of the
population of this study in 164 countries (non-OECD countries) (Creswell, 2008; Trochim &
Donnelly). Finally, a suitable sample for qualitative methods relying on text analysis most likely
did not exist. The literature surveyed in the present research study did not demonstrate the
existence of a comprehensive set of textual data suitable for analysis.
The use of perceptual ratings of skill sets, or competencies, in a survey instrument was an
accepted quantitative approach from which to derive inferences of gaps between perceived
importance and perceived performance or program efficacy (GMAC, 2007b). In comparison to
paper and pencil questionnaires, administration of the survey through a web-based process
MBA Effectiveness in non-OECD Countries 15
provides advantages in data categorization, customization of the survey instrument depending on
the type of respondent, and a rapid and efficient global reach to respondents (GMAC, 2005a).
The web-based approach was also warranted given the dispersion of potential respondents in 164
non-OECD countries.
The quantitative design chosen, t-tests of means, an analysis of variance, and a variant of
importance performance analysis (IPA), a classification technique developed by Martilla and
James (1977), were appropriate. The t-tests for means are a common method to determine
association of two samples where variables can be represented as numerical interval data (Alreck
& Settle, 2004; Trochim & Donnelly, 2007). An analysis of variance approach was also
appropriate as a measure of association (Alreck & Settle). Finally, the importance-performance
analysis was a suitable method to demonstrate relationship of paired perceptions of importance
and performance with respect to defined sets of service attributes (Vandermerwe & Gilbert,
1991) and, in particular, curriculum effectiveness (Alberty & Mihalik, 1989).
The study contained an examination, in the developing (non-OECD) country context,
perceptions of importance of MBA skill sets along with the efficacy of MBA programs to
develop those skill sets. The use of the described comparative quantitative analysis accomplished
the objective of the present research study. The use of t-tests of sample means served to present a
measure of statistical similarity of different populations and allowed inferences to be drawn
about differences in domestic United States populations as studied in Brooks and the developing
country (non-OECD) population researched in the present study. The analysis of variance
method allowed drawing of inferences regarding similarity among the subgroups of MBA
program directors, recruiters of MBA graduates, and MBA graduates situated in developing
countries. Finally, the paired plot on a Cartesian grid, used in the importance-performance (or
MBA Effectiveness in non-OECD Countries 16
effectiveness) method allowed the drawing of inferences from the clustering of perceptions
relative to attribute sets (the importance-effectiveness grid) and allowed a clear comparison of
the perceptions studied by Brooks (2006) in relation to the population of this study
Research Questions/Hypotheses
Central Research Questions
The research questions are divided into three groups. The first group (questions one and
two) asks whether a difference exists between United States-based MBA program administrators
and MBA program administrators situated in non-OECD countries with respect to perceptions of
importance of MBA skill sets and efficacy of MBA programs. The second group (questions three
and four) asks whether a difference exists between United States-based MBA program
administrators and MBA program administrators situated in non-OECD countries with respect to
perceptions of importance of MBA skill sets and efficacy of MBA programs. The third group
(questions five and six) asks whether differences exist among non-OECD situated MBA program
administrators, recruiters of MBA graduates, and MBA graduates with respect to perceptions of
importance of MBA skill sets and efficacy of MBA programs. The six sub questions are
presented below.
1. What differences, if any, exist between United States-based MBA program directors
population sampled by Brooks (2006) and MBA program directors situated in non-
OECD countries with respect to the perception of the importance of MBA skill sets?
2. What differences, if any, exist between United States-based recruiters of MBA
graduates population sampled by Brooks (2006) and recruiters of MBA graduates
situated in non-OECD countries with respect to the perception of the importance of
MBA skill sets?
MBA Effectiveness in non-OECD Countries 17
3. What differences, if any, exist between United States-based MBA program directors
population sampled by Brooks (2006) and MBA program directors situated in non-
OECD countries with respect to the perceptions of effectiveness of MBA programs in
developing of MBA skill sets?
4. What differences, if any, exist between United States-based recruiters of MBA
graduates population sampled by Brooks (2006) and recruiters of MBA graduates
situated in non-OECD countries with respect to the effectiveness of MBA programs in
developing of MBA skill sets?
5. What differences, if any, exist among subgroups of MBA program directors,
recruiters of MBA graduates, and MBA graduates in non-OECD countries with
respect to perceptions of the importance of MBA skills sets?
6. What differences, if any, exist among subgroups of MBA program directors,
recruiters of MBA graduates, and MBA graduates in non-OECD countries with
respect to perceptions of the effectiveness of MBA programs in developing of MBA
skills sets?
Quantitative Research Hypotheses
The key quantitative comparative method hypotheses to be tested, as based on the
questions listed above, were as follows:
H01: No significant difference in perceptions exists between the study population of
United States-based MBA program directors in Brooks (2006) and the study
population of MBA program directors situated in non-OECD countries with respect
to their ratings of the importance of MBA skill sets.
MBA Effectiveness in non-OECD Countries 18
HA1: A significant difference in perceptions exists between the study population of
United States-based MBA program directors in Brooks (2006) and the study
population of MBA program directors situated in non-OECD countries with respect
to their ratings of the importance of MBA skill sets.
H0.2: No significant difference in perceptions exists between the study population of
United States-based recruiters of MBA graduates in Brooks (2006) and the study
population of recruiters of MBA graduates situated in non-OECD countries with
respect to their ratings of the importance of MBA skill sets.
HA2: A significant difference in perceptions exists between the study population of
United States-based recruiters of MBA graduates in Brooks (2006) and the study
population of recruiters of MBA graduates situated in non-OECD countries with
respect to their ratings of the importance of MBA skill sets.
H03: No significant difference in perceptions exists between the study population of
United States-based MBA program directors in Brooks (2006) and the study
population of MBA program directors situated in non-OECD countries with respect
to their ratings of the effectiveness of MBA programs in developing an MBA skills
sets.
HA3: A significant difference in perceptions exists between the study population of
United States-based MBA program directors in Brooks (2006) and the study
population of MBA program directors situated in non-OECD countries with respect
to their ratings of the effectiveness of MBA programs in developing an MBA skills
sets.
MBA Effectiveness in non-OECD Countries 19
H04: No significant difference in perceptions exists between the study population of
United States-based recruiters of MBA graduates in Brooks (2006) and the study
population of recruiters of MBA graduates situated in non-OECD countries with
respect to their ratings of the effectiveness of MBA programs in developing an MBA
skills sets.
HA4: A significant difference in perceptions exists between the study population of
United States-based recruiters of MBA graduates in Brooks (2006) and the study
population of recruiters of MBA graduates situated in non-OECD countries with
respect to their ratings of the effectiveness of MBA programs in developing an MBA
skills sets.
H05: No significant difference in perceptions exists between MBA program directors,
recruiters of MBA graduates, and MBA program directors in non-OECD countries
with respect to their ratings of the importance of MBA skill sets.
HA5: A significant difference exists in perceptions between MBA program directors,
recruiters of MBA graduates, and MBA program directors in non-OECD countries
with respect to their ratings of the importance of MBA skill sets.
H06: No significant difference in perceptions exists between MBA program directors,
recruiters of MBA graduates, and MBA program directors in non-OECD countries
with respect to their ratings of the effectiveness of MBA programs in developing
MBA skills sets.
HA6: A significant difference in perceptions exists between MBA program directors,
recruiters of MBA graduates, and MBA program directors in non-OECD countries
MBA Effectiveness in non-OECD Countries 20
with respect to their ratings of the effectiveness of MBA programs in developing
MBA skills sets.
Conceptual/Theoretical Framework
The study relied on a conceptual and theoretical framework drawn from two distinct
theoretical framework sets. The first framework set, MBA program design, comprises two lines
of analysis. Framework 1A involves curriculum design approaches used for the MBA degree and
the associated skills of MBA graduates. Framework 1B uses concepts of skills definition in
knowledge management disciplines. The second framework set, poverty alleviation, also consists
of two parts. Framework 2A involves defining successful approaches for poverty alleviation and
economic development using market-based approaches, and their relationship to MBA skills
sets. Framework 2B develops the potential of traded educational services in the globalization of
MBA skill sets.
Framework 1A: MBA Skill Sets and Traditional MBA Curriculum Theories
The learning theories underlying MBA curriculum exhibit consistent and continued
tension between practical, pragmatic skills versus managerial theory (Daniel, 1998). The early
origins of business education were dominated by concerns for practical skills with little or no
hint of a theoretical framework. Well into the 19th century, a narrow, practical curriculum was
the norm (Daniel, 1998).
The Cameralist movement as introduced a university curriculum in 1727 in Halle,
Germany, exhibited the tension between theoretical approaches to administration and practical
workplace skills (Armstrong, 1973; Wakefield, 2005). The practical versus theoretical debate
began with the Cameralist tradition and was carried forward to graduate business education in
MBA Effectiveness in non-OECD Countries 21
the United States, first with the Tuck Master’s program in 1902 and then with the Harvard MBA
in 1908 (Mintzberg, 2005).
In the interwar period from World War I to World War II, business programs added
theoretical foundations to business subjects by including liberal arts subjects (Daniel, 1998; R. A.
Gordon & Howell, 1959). After a period of rapid growth in business programs in the 1940s and
1950s, two germinal works were published in the late 1950s, one by the Ford Foundation and
one by the Carnegie Foundation (R. A. Gordon & Howell, 1959; Pierson, 1959). The result of
the reports was reinforcement of a body of managerial theory beyond the practical skills.
From the 1970s through to the late 1980s, the practical versus theoretical skills debate
transformed to include outcomes expressed as competency models. Such models included that of
Hambrick (1975) with 13 stated goals for MBA programs. In 1982, the American Management
Association launched a competency-based model of the MBA consisting of 19 competencies; the
model represented a shift to competency-based models of curriculum (Boyatzis, 1982; Camuffo
& Gerli, 2004). The American Assembly of Collegiate Schools of Business (AACSB) published
a competency model in 1983, followed by changes in accreditation standards to include
outcomes and competencies (Porter & McKibbin, 1988).
The theoretical tensions surrounding MBA curriculum design theory reappeared at the
turn of the 21st century when the debate shifted to a new level based on concerns about the
adequacy of curriculum in the face of globalization. Richards-Wilson (2002) observed that
business schools lagged corporate needs in an increasingly globalizing world. Mintzberg (2004),
Bennis and O’Toole (2005), and Ghoshal (2005) delivered a pointed series of criticisms of the
MBA curriculum and associated skill sets based on the perceived inadequacy of typical MBA
programs to address globalization concerns. Rocha and Ghoshal (2006) suggested that a global
MBA Effectiveness in non-OECD Countries 22
perspective required shifting away from self-interest as a central paradigm for management
education to additional skill sets. Pastoriza, Ariño, and Ricart (2008) refined the shift in
emphasis to include skills requirements that managers foster organizational social capital.
Hawawini (2005) defined the need for evolution of MBA curriculum needs in terms of
“societal skills,” which he defined as “the ability to make business decisions that are ethical and
which take into account corporate social responsibility and sustainable development” (p. 774).
The shift toward society-focused skill sets reflected the globalization of economic activity and
the need for graduates to operate in multiple international locations. Lorange (2005), noting the
shortcomings of most existing MBA programs in developing global business leaders,
characterized the challenge as one of serving the needs of students preparing to enter businesses
operating in a globally networked society.
Framework 1B: MBA Skill Sets and Knowledge Management
An alternative approach to categorization of requisite MBA skill sets was suggested by
management thinker Drucker (1959) was an approach focused on skill sets needed for skills for
knowledge work (Frappaolo, 2006). By the 1980s and 1990s, a convergence of enterprise
knowledge with competency theories gave rise to the discipline of knowledge management as a
skill set framework. Sveiby and Lloyd (1987) described how knowledge, as a set of personal
competencies similar to MBA skill sets, was linked to organizational structure and created value
in organizations.
The nascent approach of Sveiby and Lloyd (1987) gave rise to know-how domains such
as Gummesson (1988), who proposed taxonomy of business relevant know-how in three
domains: general knowledge, specific knowledge, and personal attributes. Stewart (1997),
Edvinsson and Malone (1997), and Sveiby (1997) later developed intellectual capital models
MBA Effectiveness in non-OECD Countries 23
comprised of three categories: human capital, structural capital, and customer capital; each
category represented interrelated focuses of an organization.
The use of an intellectual capital framework represented a different view of needed
business skills. The approach shifted the focus from types of skills, as is seen in the traditional
MBA skills debate between practical and theoretical skills, to questions about whether skills
create value as purely individual skills or individual skills contribute to organizational
competency. The significance of the shift was that the importance of skills and competencies led
to a linkage of skills to value creation.
Framework 2A: MBA Skill Sets, Economic Development, and Poverty Alleviation
The alleviation of poverty in developing countries has emerged as a top concern during
the past decade. The United Nations Millennial Goals, published in 2000, set goals to halve the
proportion of the world’s population living in extreme poverty, defined as living on less than $1
per day (United Nations, 2000). Prahalad and Hart (2002) suggested that such a demographic
group be viewed as a business opportunity and termed the population bottom of the pyramid
(BOP) markets. Hammond et al. (2007) used a similar term, namely, base of the pyramid
markets. The shift in terminology represented a shift in the theoretical framework for
understanding from aid-based to market-based approaches as a preferable way to address poverty
in developing countries (Prahalad, 2006).
The theoretical framework for poverty alleviation in developing countries has been the
subject of ongoing debate since the end of World War II. A dichotomy of approaches was
summarized by Easterly (2006), who drew a distinction between a utopian social engineering
approach and a pragmatic, piecemeal search for solutions. Easterly described utopian approaches
as including a view towards planned social engineering. The results of Easterly’s research
MBA Effectiveness in non-OECD Countries 24
showed a negative correlation between foreign aid as a percentage of gross domestic product and
per capita economic growth (Easterly, pp. 346-347).
The debate about theoretical frameworks is far from settled. Stern (2002) classified the
necessary and sufficient aspect of developing-country poverty alleviation into two mutually
reinforcing frameworks of institutional climate and empowerment. The former is represented by
the approaches advocated by Sachs (2005) and Easterly (2006) described above. The latter refers
to a range of conditions including skills to find jobs, start enterprises, and manage companies, all
of which require management education (Pfeffermann, 2005). Global studies by the International
Monetary Fund (IMF) suggest that locally trained MBAs in developing markets do not have
requisite skills suitable for needed empowerment in developing countries (Chaudhry, 2003).
Easterly (2006) suggested a piecemeal market-based approach to solutions. Sachs (2005)
suggested an economic policy framework to encourage private investment, growth of human
capital, and a market business environment. Wilson and Wilson (2006) suggested an approach of
direct business relationships that allowed transfer of the behaviors, technologies, and practices
that foster successful business enterprises. Lodge and Wilson (2006a, 2006b) carried the idea
further by suggesting a World Development Corporation to provide a coordinated framework for
development and poverty alleviation efforts involving multinational corporations, governments,
and society. Finally, Yunus (2007a), based on his micro-credit lending experience with Grameen
Bank, advocated a market-based approach using business entities termed social businesses.
Framework 2B: MBA Skill Sets as Globally Traded Educational Services
The concept of global poverty alleviation through the broader use of market-based
models for economic aid has occurred at the same time as the development of a synergistic view
that education itself can be a traded service. The treaty creating the WTO in 1995 addressed, for
MBA Effectiveness in non-OECD Countries 25
the first time in the history of the WTO (called the General Agreement on Tariffs and Trade
[GATT] prior to 1995), cross-border trade in services under the General Agreement on Trade in
Services (GATS) (Knight, 2002). Negotiations to liberalize trade in educational services were
contained in the Doha round of negotiations, which commenced in 2001 and continue in a
suspended status with resumption intended in 2008 or 2009 (WTO, n.d.).
Education services under the GATS framework are divided into five classifications:
primary education services, secondary education services, higher education services, adult
education, and other education services (WTO, 1991). Graduate programs such as the MBA fall
within the definition of higher education services. The advent of classifying and examining
higher education as a set of cross-border traded services created an environment in which higher
education programs such as MBA programs and graduates could spread to developing countries
as traded services (Naidoo, 2007). The spread of the MBA degree and programs from its United
States-centric roots to other countries is a development only at its beginning. Taking recipient-
school locations’ results for the GMAT, the share of results sent to schools located in the United
States followed a steady decline from 83.9% in 2003 to 81.78% in 2007 (GMAC, 2008).
The concept of market-based models of economic development as a preferable
developmental aid model is corresponding to the concept of increased trade in educational
services. Increased access to higher education with liberalized trade in educational services
provides the promise of an effective adjunct to market-based developmental aid (IBRD, 2000).
The role of the MBA as a distinctive degree representing a range of skills in a globalized world is
an area in need of further study.
MBA Effectiveness in non-OECD Countries 26
Summary: MBA Skills Sets and Global Poverty Alleviation through Market-based Development
The aim of the present research study was to bring the four previously described
theoretical frameworks together around the question of the appropriateness of existing MBA skill
sets for MBA graduates situated in non-OECD countries. The combined framework allowed for
examination of the consistency of MBA skills between developed countries, represented by the
United States-based population for Brooks’ (2006) research, and less developed countries,
represented by a sample of respondents situated in non-OECD countries. The emergence of a
social enterprise, market-based model of poverty alleviation suggests that the enterprise
leadership and management skills represented by MBA skill sets may hold some value in poverty
alleviation efforts in less developed countries. The growth of internationally traded educational
services, which would include higher education services and MBA programs, further suggests
complementary development between market-based models of poverty alleviation and the more
globally dispersed incidence, acceptance, and advantage of MBA skill sets.
Definition of Terms
The terms defined below are used in the research proposed and are particular to the
theories and concepts discussed in the course of designing the research.
Association to Advance Collegiate Schools of Business formerly American Assembly of
Collegiate Schools of Business (AACSB): The AACSB is a nonprofit organization offering
specialized accreditation for business degrees ranging from bachelor’s to doctoral degrees
(AACSB, n.d.)
Bottom of the pyramid or base of the pyramid (BOP) markets: BOP markets are the
largest, but poorest socioeconomic markets in which people live on an average of less than $2
per day. The markets are typically located in developing countries and comprise around four
MBA Effectiveness in non-OECD Countries 27
billion people or approximately 70% of the world’s population (Ghoshal, 2005; Hammond, et al.,
2007).
Corporate social responsibility (CSR): CSR consists of voluntary actions undertaken by
companies to address economic, social, and environmental effects and impacts of business
relative to the concerns of stakeholders (Christensen, et al., 2007).
Developing countries (or economies): Developing countries (or economies) constitute a
group of countries with lower rates of per capita income than those countries that are members of
the Organisation for Economic Co-operation and Development (OECD) (Hse, et al., 2008).
General Agreement on Trade in Services (GATS): The GATS is one of the 28 free trade
agreements of the WTO that specifically covers trade in services among member countries to the
WTO treaty (Sampson, 2005).
International Finance Corporation (IFC): The IFC is a multi-lateral international
organization with 181 country members founded in 1956 acting as the private sector arm of the
World Bank. The IFC has a mission to facilitate investment in developing countries to alleviate
and reduce poverty (International Finance Corporation [IFC], n.d.).
Graduate Management Admission Council (GMAC):The GMAC is an association of
business schools that provides testing, research, and related services for graduate business
programs (GMAC, n.d.).
Graduate Management Admission Test (GMAT):The GMAT is a business school
admission examination offered by the GMAC (GMAC, n.d.).
Least developed countries: Least developed countries are the group of countries with the
least economic development. The group comprises 50 countries: 34 in Africa, 10 in Asia, 1 in
Latin America and the Caribbean, and 5 in Oceania (United Nations, n.d.).
MBA Effectiveness in non-OECD Countries 28
MBA skill sets: MBA skill sets are the 12 managerial and leadership skill sets defined by
Brooks (2006) and comprise quantitative skills, technology literacy, creative problem solving,
integrative thinking/ability to see connections in disparate information, adaptable decision-
making and execution in ambiguous and complex environments, critical/analytical thinking,
strategic thinking, oral and written communication skills, global/cross-cultural awareness,
ethical/socially responsible outlook, emotional intelligence/self-awareness, and collaboration in
diverse teams.
Non-governmental organizations (NGOs): NGOs are constituted, legal organizations
created by private persons without participation of governmental entities. These organizations
typically are active in developing countries (Tarrow, 2005).
Organisation for Economic Cooperation and Development (OECD): The OECD is a
multilateral governmental organization of 30 industrialized market democracies that are
signatories to the Convention on the OECD of 1961. The signatory countries to the Convention
are Australia, Austria, Belgium, Canada, the Czech Republic, Denmark, Finland, France,
Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea, Luxembourg, Mexico, the
Netherlands, New Zealand, Norway, Poland, Portugal, the Slovak Republic, Spain, Sweden,
Switzerland, Turkey, the United Kingdom, and the United States (OECD, n.d.; OECD, 2008).
Tertiary education: Tertiary education is an international classification of advanced
education reflecting the more advanced postsecondary education, including attendance at a four-
year college or above (United Nations Educational Scientific and Cultural Organization
[UNESCO], 1997).
MBA Effectiveness in non-OECD Countries 29
The World Bank: The World Bank, founded in 1944, is an international development
group owned by 185 member countries. The World Bank provides financial and technical
assistance to developing countries (World Bank, n.d.).
World Trade Organization (WTO): The WTO is a multi-lateral international
organization, formed in 1995 as the successor to the General Agreement on Tariffs and Trade
(GATT) and based in Geneva, Switzerland. The WTO overseas the enforces multi-lateral trading
among its 146 member countries (WTO, 2007).
Assumptions
A population comprising MBA program directors, recruiters of MBA graduates, and
MBA graduates, all situated in non-OECD countries, was chosen for the proposed study. Brooks
(2006) chose a United States-based population of MBA program administrators and recruiters.
An assumption was that the population chosen for the proposed study was sufficiently similar to
Brooks’ United States-based sample to allow meaningful comparison with the results of Brooks’
study about desired MBA skills. Further, it was assumed that the different cultural, linguistic,
and physical settings of the respondents for the proposed study would not result in significantly
different interpretations of the meanings of the MBA skills listed. Finally, it was assumed that
respondents would be honest in their responses to the questions posed.
Scope and Limitations of the Study
The selection of the MBA skills under investigation, respondents’ subjectivity and
environment, and the data collection methods are the key limitations of the research study. The
12 MBA skill sets are supported by literature and practices in the research areas related to MBA
graduates and employability. The skill sets were developed for recruitment and employment
MBA Effectiveness in non-OECD Countries 30
scenarios in developed countries that are members of the OECD. The proposed investigation
took the defined skill sets to a different group of countries and economic environments.
The first limitation of the study related to the sampling methodology, which was a
convenience sample (Trochim & Donnelly, 2007). The proposed study was not structured to
generalize results to all populations of potential respondents in non-OECD countries. The
proposed study was designed to provide insight into the differences in the required MBA skill
sets between developed or OECD countries and developing or non-OECD countries. The
limitations of the sampling frame imply that the data may be limited to providing insight and
suggestions for further analysis rather than definitive statements with respect to the population.
The proposed study may also be limited by the available sources of the sample. The
proposed sample was selected using convenience sampling through communication directly to
potential respondents situated at universities offering an American-style MBA program in non-
OECD countries through a variety of contact points including MBAs Without Borders, the MBA
Global Net network, social networking groups, and list servers of management development
organizations such as the Academy of Management. A random sample of different groups or
programs may have yielded different results. The response rate to the web-based survey
instrument could also have had an impact on the results. No guarantee existed of a 100%
response rate; differing results may have been obtained if different sets of respondents elect to
respond to the survey.
A further limitation involves the impact of current political and economic events on the
perceptions of potential respondents. Political and economic crises of note may alter the
perceptions of respondents to globalization and the need for consistent managerial and leadership
MBA Effectiveness in non-OECD Countries 31
skills. Such a change in perceptions could alter the perceived importance and effectiveness
ratings relative to MBA skills sets.
Finally, an element of subjectivity exists in the responses of those surveyed. Subjectivity
can arise because of a focus on specific situations and experiences by the survey respondent. The
environment in which respondents work as well as respondents’ understandings of MBA
programs can contribute to differing views about the meaning of particular skills.
Delimitations of the Study
In the present research study, data were collected from three groups, all located in non-
OECD countries: MBA program directors, recruiters of MBA graduates, and MBA graduates.
The sampled populations represented potentially a wide array of MBA program designs and
delivery modalities. The designs of programs and the delivery modalities could have some
impact on the perceptions of respondents and their responses.
A further delimitation relates to the shift of employer-desired MBA skills over time. The
survey instrument was focused on a defined set of MBA skills thought to be associated with the
requisite MBA skills desired by employers at the time of the study. As shown by the literature
review in Chapter 2, MBA skills represent an evolving set of expectations and concepts. Over
time, the requisite skills may change and shift as business demands on employers change and
shift.
A final delimitation of the proposed study relates to language. The survey instrument was
presented in English only and thus was not in the native language of all potential respondents. To
the extent that English is a lingua franca of global business, the population surveyed would tend
to be international in outlook and location rather than have local and provincial perspectives and
linguistic abilities. In some cases, however, respondents’ command of the English language may
MBA Effectiveness in non-OECD Countries 32
have varied such that the understanding of terms in the instrument could vary. Fluency in spoken
English is not a prerequisite of sample selection. Respondents may possess little or no
knowledge of English and be able to complete the survey using web translations such as
http://translate.google.com. The level of fluency of a respondent, however, could impact the
understanding of cultural nuances of the questions and thereby may alter the nature of the
responses. Different languages contain nuanced ideas of desirable skills and competencies
embedded into the structure and organization of the language and associated context (Hall,
1980). The differences could be reflected in the way survey respondents responded to the survey
instrument.
Summary
Over the first century of the existence of the MBA degree, a set of skills representative of
graduates’ abilities evolved. The set of skills was developed primarily by domestic United States
programs to develop domestic managers for work in United States-based domestic companies
(Daniel, 1998). Over the past decade, business has exhibited an increasingly global nature in all
aspects of business operations (Friedman, 2007). As markets have developed a more global
character, a significant group of consumers, termed bottom or base of the pyramid (BOP)
markets, consisting largely of populations living on less than $2 per day and comprising 70% of
the world’s population, have been identified as key to future improved levels of economic
activity and to reducing global poverty levels (Hammond, et al., 2007; Prahalad, 2006). The
global view of BOP markets when contrasted with the traditional development of MBA skills for
the United States-based domestic markets raises questions about the adequacy of MBA skills for
business in BOP markets. The implications of the historical development of the MBA skill set
juxtaposed to emerging theories of global poverty alleviation through market-driven
MBA Effectiveness in non-OECD Countries 33
development have not been addressed adequately by the existing literature and form the basis for
further study in the proposed research.
In chapter 2, four literature frameworks are examined. The frameworks include the
evolution of MBA skill sets as a part of managerial and leadership education, competency
frameworks developed for knowledge management, the role of higher education in global
poverty alleviation, and international trade in educational services. Taken together, these
divergent frameworks provide an indication of the approaches to defining the desired MBA skill
sets that would be best suited for developing economies.
MBA Effectiveness in non-OECD Countries 34
CHAPTER 2: REVIEW OF THE LITERATURE
MBA students now completing pursuing an MBA degree enter an economy influenced by
the rapidly evolving globalization of business in nearly every aspect of business operations
(Friedman, 2007). Global markets today are seen to include a large, underdeveloped market of
consumers living on less than $2 per day and comprising nearly 70% of the world’s population;
such populations form significant existing and potential consumer and product markets
(Hammond, et al., 2007). Market dynamics in significant developing markets call for different
approaches to business from the prevailing models of multinational corporations and education
that traditionally prepared business leaders (Sachs, 2005). The need for different business
approaches to underdeveloped markets raises questions about whether the skill sets developed
for MBA programs to serve markets primarily in the United States are adequate.
The literature review chronicles the development of MBA skills sets and is focused on
elements that may be called into question with an increasingly interconnected global economy.
An additional approach to skill sets originating in knowledge management is reviewed.
Following discussion of the evolution of MBA skill sets, the emerging concepts of market-driven
economic development as a means of global poverty alleviation in bottom or base of the pyramid
(BOP) markets are surveyed. Finally, the potential of cross-border trade in educational services
as a catalyst to a broader dispersion of MBA programs in BOP markets is reviewed.
A map of the literature, which shows the convergence of the main theories supporting the
definition of MBA skill sets and the potential role that such skills play in the management and
leadership of enterprises in developing countries, is provided in Appendix A. The literature map
demonstrates how divergent theories of requisite business skill sets converge towards a model of
MBA Effectiveness in non-OECD Countries 35
MBA skills sets for developing countries. The map illustrates theories with respect to the needed
skills and is focused on learning outcomes and not learning processes.
Documentation
The literature used in the proposal was obtained from electronic databases hosted by the
University of Phoenix; periodicals and books in various academic libraries in the Denver,
Colorado, area, including The University of Colorado at Denver, The University of Colorado at
Boulder, and Denver University; and the Researcher’s collection of books, periodicals, and
journals assembled for this study. The literature searches included, but were not limited to, terms
such as MBA skill sets, MBA history, business education, Millennial Development Goals,
bottom of the pyramid markets, base of the pyramid markets, economic development, poverty
alleviation, transnational learning, university mission, and educational standards. Such terms
included the names of various key theorists including Bassett (2006), Bennis and O'Toole
(2005), Boyatzis (1982), Copeland (1958), Daniel (1998), Ghoshal (2005), R. A. Gordon and
Howell (1959), Lorange (2005), Maxwell, (2009), Millstein et al.(2009), Mintzberg (1978, 2004,
2005, 2009), Mintzberg and Gosling (2002), Pierson (1959), Prahalad (2006), Prahalad and
Hammond (2002), Prahalad and Hart (2002), Sachs (2005, 2008), Senge, Smith, Kruschwitz,
Laur, and Schley (2008), Yunus (2003, 2007a, 2007b), and Zwetsloot (2003).
Germinal literature was used to illustrate the evolution of skill sets associated with
business education and in particular, MBA skill sets. Earlier sources documenting the
development of business education and the MBA degree were authoritative books. Current peer-
reviewed articles dated year 2004 and later were used to document recent trends and concerns
with respect to the relevance of MBA curriculum and associated skill sets. The topics of global
poverty alleviation, Millennial Development Goals, and bottom of the pyramid markets were
MBA Effectiveness in non-OECD Countries 36
documented primarily using books by thought leaders in the field and official documents of the
WTO, the OECD, and organizations of the United Nations, including UNESCO and the General
Assembly of the United Nations.
Literature Gap
The literature in all four areas of inquiry exhibits gaps with peaks of activity around
major publications followed by periods of few publications. Daniel’s (1998) chronology of the
MBA degree demonstrated that critique was followed by periods of active publication. With
respect to the literature on MBA skill sets, peaks of publications were found in the literature in
1958-59, 1973-76, 1987-91, 1997-2000, and 2005-2008 (Daniel, 1998; Mintzberg, 2005).
Limited academic research and literature, however, was evident about MBA skill sets relevant to
developing economies and the potential impact of such skills on global poverty alleviation
(Ghemawat, 2008). McIntyre and Alon (2005) noted that there is a void of comprehensive
literature relative to management education in developing economies. As shown in the literature
review, blending MBA skill set literature and economic development was a logical outcome but
produced little direct literature.
The literature for knowledge management exhibited a peak of founding theorists and
major publications around 1999 and subsequently has been less pronounced. Literature regarding
international trade in services has been sporadic and trails major trade negotiations. In this area, a
peak in literature was seen in 2002-03 with the commencement of the Doha Round of the WTO
negotiations and has subsided as the negotiations have stalled. The literature on market-based
poverty alleviation is a recent phenomenon dating to around 2003 with a few publications and a
consistent but small stream subsequently. The periodic nature of the literature in all four areas
MBA Effectiveness in non-OECD Countries 37
reviewed coupled with an extensive review of the seminal and historic origins of each area create
a literature gap in post-2004 literature relative to pre-2004 sources.
Framework 1A: MBA Skill Sets and Traditional MBA Curriculum Theories
The founding of the Wharton business school at the University of Pennsylvania in 1881
represented the start of a growing movement in recognition of business subjects as valid
academic subjects in the United States (Crainer & Dearlove, 1999). The historical precedents of
a graduate degree in business can be traced back to the Master in Commercial Science diploma
first awarded by Dartmouth College in 1902 (Crainer & Dearlove, 1999; Daniel, 1998). The
MBA came into existence in 1908 at the Harvard Business School, which was the first school
that focused purely on graduate business education (Copeland, 1958). Curriculum at the time
focused heavily on learning about existing business practices rather than about the theoretical
frameworks underpinning business (Pierson, 1959). The development represented further steps in
the progression of business degrees that can be traced to the early times of the industrial
revolution.
Historical Origins of MBA Skill Sets
The move towards a graduate-level business curriculum represented a departure from
what had become a decades-long focus on basic practical skills, and the curriculum defined a
skill set required by business for business graduates. Watts (1716) provided the first set of
business curriculum requirements deemed to be responsive to employer needs and identified five
areas: correspondence, arithmetic, merchants’ accounts, mathematics and sciences, and propriety
of expression. The areas remained largely unchanged well into the 19th century when the
narrowness of such a skill set model was questioned amid calls from industry for more relevant,
business-focused education. At the same time, resistance from traditional universities that
MBA Effectiveness in non-OECD Countries 38
abhorred the introduction of business subjects into the classical university curriculum was
apparent (Daniel, 1998).
Mintzberg (2005) traced the origins of the MBA degree to the Cameralist movement of
the late 1800s in Germany. The term Cameralist was derived from the German word Kammer,
which was the secure area of the treasury where money was kept. Cameralism itself was first
introduced as a university curriculum in 1727 in Halle, Germany (Armstrong, 1973). The
movement generated debate between the need to teach a theory of administration and the demand
for the practical skills of administration, a precursor to the debates that persist (Wakefield, 2005).
Aspiring Cameralists were required to sit for exams about a range of topics, including
administration (Jackson, 2005). The Tuck Masters program in 1902 followed by the Harvard
MBA in 1908 represented a shift to a graduate skill level for managerial skills from the long
tradition of the Cameralists (Mintzberg, 2005).
Pre World War II: Functional Focus as the Basis for MBA Skills
During the period from the outbreak of WWI to the onset of WWII, from 1914 to 1940, a
sharp increase in the number of business schools and graduate programs in business in the
United States was noted (Pierson, 1959). Business students were given access to liberal arts
subjects in addition to business subjects. During the period, the focus of business school
curriculum changed to greater concentration on the functions of business enterprises. The case
study method was introduced at Harvard Business School as a means for providing access to
real-life business experiences in the classroom (Daniel, 1998; R. A. Gordon & Howell, 1959). In
1916, the American Association of Collegiate Schools of Business was founded by business
school deans to improve business education and included academic elements in the curriculum
(AACSB, 1966; Crainer & Dearlove, 1999)
MBA Effectiveness in non-OECD Countries 39
The Harvard Business Reports appeared in 1926 as a series of management precedents
that were meant to parallel similar bodies of knowledge in law, accounting, finance, and
engineering (Daniel, 1998). The 149 precedent cases sought to create taxonomy of management
knowledge that was prescriptive. The reports represented the climactic end of a era of thinking
that management was a mechanistic discipline rooted in applied economics (Copeland, 1958).
By the 1930s, the view was widespread that business was comprised of managerial
functions that could serve as the basis of defining the required skills for graduate business
students (Daniel, 1998). The view augmented earlier concepts that industry knowledge formed
the key foundation of the requisite MBA graduate skills (Mintzberg, 2005). As an example, the
faculty model at Harvard reflected splits in the expertise of a faculty comprised of groups
dedicated to industry specialization, functional knowledge, and case writing specialists (Gleeson,
Schlossman, & Allen, 1993). The focus on functions and industry represented continuation of a
history of instruction in administration that dated back to the Cameralist tradition (Mintzberg,
2005). By the late 1950s, the MBA skill set based solely on knowledge of administrative
institutions and routines was called into question.
The Foundation Reports: Focus on Analytical Skills Models
The 1940s and 1950s reflected a period of massive business school growth in general and
in particular for graduate programs, along with an increased focus on analytical methods related
to planning and decision-making (AACSB, 1966). Two germinal works were published in the
late 1950s that contained comprehensive analyses of existing business education in the United
States. One of the studies was sponsored by the Ford Foundation with the stated purpose of
examining an array of issues including “knowledge, skills, and aptitudes required for successful
business careers” (R. A. Gordon & Howell, 1959, p. 9). The other study, sponsored by the
MBA Effectiveness in non-OECD Countries 40
Carnegie Corporation of New York, focused on the need to improve academic standards in
business education (Pierson, 1959). Both reports issued highly critical reviews of the overall
quality and appropriateness of business education (Bennis & O'Toole, 2005). A part of each
report also dealt with the requisite managerial and leadership skills for business.
After over 400 pages of analysis, R. A. Gordon and Howell (1959) exhibited frustration
with the level of understanding of the requisite skills for successful business graduates and the
attendant influence on business curriculum and stated the following:
But only a start has been made [with this study]. There is need for further research, in
which business and the universities should cooperate, on the basic elements in different
kinds of management jobs, on the qualities and training needed for various types of
management positions, and on the specific roles to be played by different types of
experience and formal education in the development of the kinds of competence that are
required. (p. 426)
In a separately authored chapter in Pierson’s text, Bach (1959) defined the skill set as
comprising managerial decision making, which was defined as “(1) Deciding what decisions
ought to be made, i.e., what problems need managerial decisions; (2) making decisions
(operating decisions, plans, or policies) concerning those problems; and (3) getting the decisions
implemented effectively” (p. 320). Bach’s preference would have been to substitute managerial
behavior for the term managerial decision-making. Bach also emphasized that decision-making
did not provide an adequate conceptualization of the required managerial skills in business.
The Ford Foundation and Carnegie Corporation reports generated restructuring of
business curriculum and resulted in greater emphasis on “analytical and research tools derived
from the fundamental disciplines,” along with an emphasis on physical and social sciences
MBA Effectiveness in non-OECD Countries 41
(Mintzberg, 2004, pp. 135-136). Bennis and O’Toole (2005) noted that the focus on analytical
skills resulted in a focus on research skills rather than managerial competencies of graduates.
Daniel (1998) asserted that the long-term impact of the two studies was not entirely positive and
noted a trend towards a more academic orientation at the expense of humanistic subjects.
Mintzberg (2005) noted that “in correcting the earlier problems, the two 1959 reports
created other ones” (p. 30). Specifically, during early 1960s business schools went down a path
of emphasizing business functions through a nexus with business while also engaging in narrow
research at the expense of a more integrative view of management (Daniel, 1998). MBA
programs began surveying major corporations, primarily in the United States, about their hiring
practices and needs. The nexus of corporations to business schools at the time of the Vietnam
war created concerns that curriculum ignored the social and ethical emphases in favor of
corporate agendas (Barzun, 1968; Ridgeway, 1968). Concurrent with the criticism about the
MBA curriculum neglecting social concerns, commentators such as Drucker (2003) raised
concerns about a theory-practice gap that reflected an emphasis on research removed from the
societal realties of business.
The MBA Golden Age: Competency Models of MBA Skill Sets
The 1970s through to the late 1980s represented what could be termed a golden age of
innovation in MBA programs. Through the 1970s, MBA programs were improved with
innovations in delivery to accommodate a burgeoning student population in the United States
(Daniel, 1998). The debate about the balance of practical versus theoretical learning continued
with a shift to competency-based models of MBA skill sets. Early in 1975, a professor at
Pennsylvania State University published the results of a survey of rankings of 13 stated goals for
MBA programs (Hambrick, 1975). The concept of goals was very similar to a statement of MBA
MBA Effectiveness in non-OECD Countries 42
skills. A summary of the groups of goals or skills, in descending importance, is contained in
Table 1 below.
Table 1.
Goals of MBA Schools Ranked by Executives and Educators
Goal Area
Problem solving
Problem recognition
Creative solutions
Communication (oral and written communication skills)
Implementation (ability to implement managerial decisions)
Specific business environment (understanding the competitive
business environment)
Analysis (business analytical skills)
Interpersonal competencies
Reacting well under pressure
Understanding upper-middle and top management needs
Learning and leadership
Acquiring and building leadership skills
Developing life-long learning approaches
Other
Knowledge of remote business environment (political, social,
and economic)
Attitude and enthusiasm for management
Compiled, developed, and adapted by Gilbert (2009) from Hambrick (1975).
This publication represented an early effort to address the weakness observed by Gordon (1976)
that business had not defined management education in terms of the needs of business.
In response to increased criticism about the relevance of the MBA curriculum and
associated skill set, the American Management Association (AMA) launched a competency-
based model of the MBA in 1980, consisting of 19 competencies: accurate self-assessment,
conceptualization, concern with close relationships, concern with impact, developing others,
diagnostic use of concepts, efficiency of orientation, logical thought, managing group process,
perceptual objectivity, positive regard, proactivity, self-confidence, self-control, spontaneity
MBA Effectiveness in non-OECD Countries 43
stamina and adaptability, use of oral presentations, use of socialized power, use of unilateral
power (Boyatzis, 1982). The AMA competency-based model represented a shift of emphasis to
outputs of MBA programs rather than the content or curriculum inputs of programs (Camuffo &
Gerli, 2004). Despite the logic of focusing on outputs or the results of a curriculum, the models
used before the AMA competency-based approach were concerned only with the inputs, or the
types and numbers of courses offered. Prior to the AMA approach, it was assumed that the link
of curriculum to the abilities of graduates in the workplace was based on the type and number of
courses offered.
The AACSB (2007) undertook other efforts to shift the definition of the MBA skills set
to a competency model. The AACSB is a not-for-profit organization founded in 1916 in order to
bring together companies, academic institutions, and other organizations for purpose of
improving business administration and managerial education. In 1983 the AACSB
commissioned a major study of management education as a means to update the foundation
studies and provide future directions for management education (Porter & McKibbin, 1988).
Based on extensive survey research, Porter and McKibbin (1988) made recommendations
about six areas: breadth of curriculum by including all disciplines of the university, attention to
the external business environment, greater emphasis on global aspects of business, enhanced
focus on management information systems, incorporation of cross-functional integrated learning
approaches, and heightened emphasis on the people or soft skills. Following Porter and
McKibbin’s report, the focus of AACSB standards moved from examining activities to the
results of the activities (Cudd, King, & O Hara, 1995; Fugate & Jefferson, 2001). The AACSB
integrated such recommendations, as reflected in its adjustments of accreditation standards.
Standard 18, pertaining to graduate business education, reflect a competency model. The
MBA Effectiveness in non-OECD Countries 44
capacities developed through the knowledge and skills of a general master’s level program were
the following:
1. Capacity to lead in organizational situations.
2. Capacity to apply knowledge in new and unfamiliar circumstances through a
conceptual understanding of relevant disciplines.
3. Capacity to adapt and innovate to solve problems, to cope with unforeseen events,
and to manage in unpredictable environments (AACSB, 2007, p. 16)
In contrast to Boyatzis (1982), the AACSB competency model is quite general, leaving
significant room for interpretation and a range of practices. As discussed in the following
section, the over laying of competency models on MBA skill sets over earlier administrative
models led to a level of confidence that MBA programs were delivering the skill sets required by
society and business.
GMAC followed a similar approach, as exhibited in its annual MBA recruiter survey.
Each year, the GMAC surveys recruiters of MBA graduates, predominantly in the United States,
in four work domains with a total of 17 managerial competencies (GMAC, 2007a). The domains
and managerial competencies are summarized in Table 2 below.
MBA Effectiveness in non-OECD Countries 45
Table 2.
GMAC Work Domains and MBA Competencies
Behavioral competencies:
Managing human capital
Managing tools and technology
Managing decision-making processes
Managing strategy and innovation
Managing the task environment
Knowledge competencies:
Knowledge of technology, product design, and production
Knowledge of human behavior and society
Knowledge of general business functions
Knowledge of media communications and delivery
Skill competencies:
Interpersonal skills
Skills in operations
Strategic and systems skills
Foundation skills
Work-style competencies:
Learning, motivation, and leadership
Social orientation
Conscientiousness
Generative thinking
Compiled, developed and adapted by Gilbert (2009) from GMAC (2007a).
The GMAC model provided a logical grouping of competencies that was not evident in
the earlier literature of Hambrick (1975), the AMA model of Boyatzis (1982), and the broad
approach taken by the AACSB (2007) model. The GMAC model was anchored in competency
definitions, which represents an evolution of the earlier models. GMAC has validated its model
through annual recruiter surveys GMAC (2005a). The GMAC survey population, however, is
heavily weighted towards developed country schools: 94% of respondent schools ware located in
OECD countries (GMAC, 2007a). Similarly, the 96% corporate recruiters responding to the
GMAC study were located in the United States or Europe.
MBA Effectiveness in non-OECD Countries 46
Rubin and Dierdorff (2009) proposed a competency model including six managerial
categories: decision-making, human capital, strategy/innovation, task, administration/control,
and logistics/technology (p. 213). Through a survey of incumbent managers, Rubin and
Dierdorff ranked the competencies and found that decision-making processes and human capital
management were of relatively higher importance to the other four competencies in their model.
The study further found that data available for publicly available courses of ASCBS accredited
programs in the United States indicated a misalignment of curriculum to the competencies
desired by incumbent managers.
Another approach to the definition of the requisite MBA skill sets was exhibited by the
Educational Testing Services (ETS) Major Field tests in graduate business and the Certified
MBA (CMBA) examination. The ETS approach provided assessment indicators in five
knowledge domains of the MBA: marketing, management, finance, managerial accounting, and
strategic integration (Educational Testing Services [ETS], 2003). Each domain had subgroups
specific to each of the topical areas. The CMBA approaches used an examination to assess
competency in 10 skill areas: “organizational behavior, strategy, marketing, operations,
macroeconomics, microeconomics, finance, managerial accounting, financial accounting, and
quantitative methods” (International Certification Institute, 2003). Both the ETS and the CMBA
approaches rely on written examinations and were designed to measure intellectual mastery of
core curricular areas of MBA programs. The concept of competencies was not readily evident in
either of the approaches. Instead, the focus was on measuring intellectual achievement and
mastery of concepts. As seen in the following discussion, the focus on concepts as a proxy for
skills presents concerns in a global economy.
MBA Effectiveness in non-OECD Countries 47
To the Present: A Crisis of Confidence in Skills for a Global Economy
Daniel (1998) concluded his analysis with a reflection on MBA trends from 1985 to
1997, noting that criticisms of MBA skills sets were cyclical and represented a perpetual tug-of-
war between an intellectual theoretical basis and the practical demands of business. By the turn
of the century, another round of criticism appeared. Pfeffer and Fong (2002) suggested that the
standard MBA curriculum bore little relationship to the requisite skills demanded of graduates
entering business. Richards-Wilson (2002) observed that business schools lagged corporate
needs in an increasingly globalized world.
Mintzberg (2004), Bennis and O’Toole (2005), and Ghoshal (2005) delivered a series of
criticisms of the MBA curriculum and associated skill sets. Mintzberg (2004) suggested
developing MBA skill sets based on the domains of managing self, managing relationships,
managing organizations, managing context, and managing change. Bennis and O’Toole (2005)
focused on the lack of education and skills related to the humanities. Ghoshal (2005) presented a
much wider criticism by asserting that the fundamental paradigms underlying management
theory were an “ideology-based gloomy vision” (p. 82) largely lacking in social responsibility.
Rocha and Ghoshal (2006) refined the concept further through a critique of self-interest
as a central paradigm for management education, including MBA programs. A change in focus
from pure self-interest to a broader, balanced approach that incorporated a variety of motivations
beyond self-interest opened the door to additional skills sets. Pastoriza et al. (2008) refined the
shift in emphasis to include skills that enabled managers to foster organizational social capital
consisting of two components: collective instead of individual goal orientation and shared trust.
The organizational capital model, however, was seen only as a beginning to the process of
redefining the requisite managerial skills and behaviors.
MBA Effectiveness in non-OECD Countries 48
Hawawini (2005) defined a desirable evolution of MBA curriculum needs in terms of
societal skills, defined as “the ability to make business decisions that are ethical and which take
into account corporate social responsibility and sustainable development” (p. 774). The shift
towards society-focused skill sets reflected the globalization of economic activity and the need
for graduates to operate in multiple international locations. Lorange (2005), noting the
shortcomings of most existing MBA programs, characterized the challenge as one of serving the
needs of students who were entering businesses operating in a globally networked society.
Parallel Track: The Approach to MBA Skill Sets Outside of the United States
The MBA is largely an American invention focused on the needs of American business
(Fayol, 1918). Nonetheless, the degree has enjoyed widespread global adoption (Bickerstaffe,
2006). A reasonable proxy for the number of MBA students worldwide is location of the
destination schools for GMAT score reports. Despite the international reach of MBA degrees,
nearly 82% of GMAT examinees in 2007 sent results to MBA schools located in the United
States (GMAC, 2008).
Consistent alternative approaches to the MBA skills model in the United States were not
found in the literature. In Europe, the dominance of nationally funded schools of management
with associated traditions has prevented, until very recently, convergence toward a model of
desirable skills for MBA or similar programs (Byrkjeflot, 2001; The Creation of European
Management Practice [CEMP], 2001). Europe, while home to a number of MBA programs, has
exhibited fragmented and largely inconsistent approaches in various countries in various
institutions with different models of curriculum and skills development (de Onzoño & Carmona,
2007).
MBA Effectiveness in non-OECD Countries 49
Blasius (2007) attributed the fragmentation of MBA programs to the historical
development of MBA degree programs in Europe and overseas export endeavors of American
business schools in the decades after World War II with programs grafted onto different cultures.
Frey and Eichenberger (1993) suggested that the fragmentation of business educational
approaches in Europe resulted from a lack of area-wide competition amongst academics. Frey
and Eichenberger classified educational markets as C-markets, denoting large competitive
market spaces that are typical in the United States. The contrasting market approach is termed R-
markets, denoting a high level of regulation and intervention by the state, often centered on
national language and culture. Within R-markets, there is less focus on graduate education and
corresponding research. The fragmentation caused by interventionist approaches in R-markets
leads to teaching and research has been described as “quirky” (Frey & Eichenberger, 1993, p.
189).
De Onzoño and Carmon (2007) suggested a convergence towards C-markets was
apparent in Europe, led by the UK schools. A number of factors including the general
globalization of economies and the Bologna Process drove the convergence. The Bologna
Process will result in a standardization of degree types and levels and is expected to ensure some
level of standardization about graduate business curriculum among 46 signatory countries in and
beyond Europe (Economist Intelligence Unit [EIU], 2007). The historical fragmentation of
European education markets into R-type markets implies fragmentation in approaches with
respect to MBA curriculum and desired skill sets. Fragmentation was especially likely given the
tendency to focus on local problems in R-market educational institutions (Frey & Eichenberger,
1993).
MBA Effectiveness in non-OECD Countries 50
Outside of Europe no viable alternative appears to have emerged to challenge the
American model (Blass & Weight, 2005). At the same time, leadership models associated with
Western culture’s MBA skill sets have been noted to lack international validity in Asia, Arab,
and African areas (Mellahi, 2000). Newell (1999) found that Western management knowledge,
represented by the MBA, did not transfer well to Chinese culture given the key differentiator was
a difference in cultural values between the West and China.
The lack of a consistent view of required MBA skill sets outside the United States has
given rise to questions about the nature of the required skill sets for graduate business programs
and graduates. The literature pointed to a need for something else but did not provide clarity
about the content of that something else. The need is accentuated by the emergence of the
substantial bottom of the pyramid markets that are undergoing an epochal transformation out of
poverty of those markets into developed economies.
Hofstede (2004) performed a cultural study on MBA students worldwide to develop an
understanding of the differences in importance of 15 business goals (see Table 3).
Table 3.
Fifteen Business Goals Studied Across 21 County/University Groups
Goal
Overall
Rank
Cluster
2
Cluster
3
Cluster
4
Cluster
7
Growth of the business 1
4 6 1
Continuity of the business 2
5 1 4
This year’s profits 3
4612
Personal wealth 4
6 2 4 3
Power 5
4 3 4
Honor, face, reputation 6
365
Creating something new 7
3 2
Profits 10 years from now 8
615
Staying within the law 9
2 5
Responsibility towards employees 10
1 1 3 6
Respecting ethical norms 11
6
Responsibility towards society 12
5 2
Game and g ambling spirit 13
435
Patriot ism, national pr ide 14
2 3 5
Family intere sts 15
1 2
Top 6 Goals by Cluster
Compiled, developed, and adapted by Gilbert (2009) from Hofstede (2004).
MBA Effectiveness in non-OECD Countries 51
The study resulted in the development of seven clusters of responses, based on similarity of
scores among the MBA students. Cluster 1 comprised mainland Chinese students studying
abroad. Cluster 2 consisted of students from Germany and the Netherlands. Cluster 3 contained
MBA students from Hong Kong and Asians in Hawaii. Cluster 4 comprised students from Brazil,
France, Hungary, and Panama. Cluster 5 consisted of students from the Bahamas, India, and
Jamaica. Cluster 6 reflected students from New Zealand and the UK. Finally, Cluster 7 consisted
of United States students from mainland universities as well as Caucasians in Hawaii.
Research such as that by Hofstede (2004) suggested cultural differentiation in preferences
for types of business goals. In particular, distinctions in goal preferences identified between
Clusters 3, 4, and 5 suggested that desirable skills sets of business leaders might be different.
Clusters 4 and 5 also represented, at least in part, countries with large BOP markets. Such
differences, in turn, could suggest that the relative importance of MBA skill sets is perceived
differently in the BOP markets as compared to more developed markets, represented by Clusters
2, 6, and 7.
In the following sections, different perspectives regarding skill sets are examined. The
next section deals with a knowledge management framework for assessing needed MBA skill
sets. Following that is an examination of the cultural differences affected by globalization in a
world where educational services increasingly become the object of international trade and are
subject to international trading rules.
Framework 1B: MBA Skill Sets and Knowledge Management
Daniel (1998) noted a historical dichotomy in thinking with respect to MBA skill sets
between practical job skills and theoretical reasoning ability. Such a simple dichotomy, however,
may ignore a broader context of reference for the types of skills desirable in an MBA skill set.
MBA Effectiveness in non-OECD Countries 52
Frappaolo (2006) analyzed a parallel history of the intertwining of business education and
knowledge management dating to the publication of Drucker’s (1959) introduction of the term
knowledge worker in the seminal work Landmarks of Tomorrow 50 years ago.
Although knowledge management predates Drucker’s 1959 observation, the development
of knowledge management theories in the 1980s and 1990s presented a convergence of concepts
in enterprise knowledge, competencies, and the skill sets of managers. Sveiby and Lloyd (1987)
introduced the idea of knowledge providing value to the organization through a combination of
personal competencies operating through an organizational structure; the result was dependent
on the nature and quality of personal and organizational leadership. Sveiby and Lloyd identified
several leadership characteristics that were strikingly similar to the MBA skill sets identified by
various other authors, such as Hambrick (1975), Boyatzis (1982), and GMAC (2008), who
focused specifically on MBA skill sets. Sveiby and Lloyd’s identified skills included community
involvement, organizational design and development, tutoring and mentoring, providing
organizational direction, and performance management.
The leadership know-how domains described by Sveiby and Lloyd were strikingly
similar to many of the MBA competencies developed by the AMA, as described by Boyatzis
(1982). Organizational design and development find a parallel in conceptualization, diagnostic
use of concepts, and managing group processes. Tutoring and mentoring appear reasonably
similar to the AMA category of developing others. Providing organizational direction appears to
parallel the use of socialized and unilateral power. Finally, performance management finds some
parallels in both developing others and managing group processes.
The GMAC (2007a) competency areas also provided parallels to the know-how domains
described by Sveiby and Lloyd (1987). The GMAC’s (2007a) work-style and behavioral
MBA Effectiveness in non-OECD Countries 53
competencies find common ground in Sveiby and Lloyd’s (1987) community involvement and
performance management know-how. Organizational direction would fit within the behavioral
competencies of GMAC (2007a). The emphasis on tutoring and mentoring by Sveiby and Lloyd
(1987) would find equivalents in behavioral competencies (managing human capital), skill
competencies (interpersonal skills), and work-style competencies (learning, motivation, and
leadership) under the GMAC (2007a) model.
The nascent approach of Sveiby and Lloyd (1987) was later reflected in refined
taxonomies of know-how domains in the development of a knowledge management discipline. A
definition of know-how domains for business by Gummesson (1988) provided taxonomy of
business that included three areas: general knowledge, specific knowledge, and personal
attributes. The general knowledge category described know-how of theories, models, and
concepts as well as techniques, methods, and tools. Theories, models, and concepts were
considered overall knowledge structures in given areas while techniques, methods, and tools
dealt with the ability to exploit knowledge for commercial use. The second category, specific
knowledge, was specific to institutional conditions, such as customary ways of working in an
industry, company, or market, and social patterns, such as preferred ways of interaction dictated
by culture and custom. The final category, personal attributes, was focused on the interaction of
the personality of the business actor and the other two knowledge areas.
Gummesson (1988) based his model on personal experience in business research and
specifically, designing a human resources competency model for marketing operations.
Gummesson’s approach transitions from general environmental areas to specific personality
matters. The flow of the model is not unlike that of the GMAC (2007a) structure that looks at
generalized knowledge in the knowledge competencies, technical abilities in the behavioral and
MBA Effectiveness in non-OECD Countries 54
skill competencies, and personality-linked abilities in the work-style competencies. A distinction
between the approaches of Gummesson (1988) and GMAC (2007a) appears to be in the
flexibility of the former to provide desirable sets of know-how dependent on the specific
environments of an industry, organization, and person’s position in the organization.
The models described by Sveiby and Lloyd (1987) and Gummesson (1988) were later
refined during the ascendancy of the knowledge management movement in the late 1990s and
early 2000s. Stewart (1997) described the requisite business skills as falling into three
intellectual capital categories: human capital, structural capital, and customer capital, each
representing interrelated focuses for an organization. Stewart presented a three-level
classification of human capital: individual skills as commodity skills, leveraged skills, and
propriety skills. Commodity skills were generic skills useful to virtually any business. Examples
of these types of skills range from basic abilities, such as computer input, to more specific skills,
such as employee benefits administration. Leveraged skills tend to be more specific to a
particular industry than any one organizational or company environment. Examples of these
skills include complex logical skills needed for computer programming or contextual knowledge
skills needed in the practice of law. Propriety skills are generally company-specific. Examples of
such skills described by Stewart include the strategy expertise of consultants working at
McKinsey or the hotel management skills exhibited by employees of a Ritz-Carlton.
Appearing within months of Stewart’s (1997) book, Edvinsson and Malone (1997)
developed an intellectual capital approach that emphasized customer focus, process focus, and
human focus. The concept of customer focus relates to a range of knowledge about how to
discover, manage, and use knowledge about a company’s relationship with its customers. The
process is focused on managerial approaches and the technology used to create value in a
MBA Effectiveness in non-OECD Countries 55
company. The human focus is motivations and capabilities. In this area, as in Stewart’s (1997)
human capital skills, a parallel to the requisite business management and leadership skills found
in the various definitions of MBA skill sets is apparent. Evidinsson and Malone (1997) referred
to educational standards such as the Bilan des Compêtences (balance sheet of competencies) of
France, the Canadian Assessment of Prior Learning, and New Zealand’s National Qualifications
Framework as indicative of potential frameworks to define the competencies required in
business. In a later review of such concepts, Civelli (1998) described the difficulties associated
with using educational standards to define skill sets because personal knowledge and
competencies are dependent on the business and profession context and setting in practice.
In the same time frame as the two other knowledge management works described above,
Sveiby (1997) used a slightly different three-part framework to describe required organizational
know-how: professional competence, internal structure, and external structures. Sveiby’s
approach to personal competencies is based on designing human capital competencies explicitly
around expert knowledge that a business requires. The approach differs from Stewart (1997) or
Edvinsson and Malone (1997) because it does not seek to design a comprehensive framework but
rather, relates the skills to the core competitive, strategic knowledge of the company. Through its
flexibility, Sveiby’s (1997) approach illustrated the difficulty of finding one right framework of
competencies or skills that applied universally across the board for all types of businesses and
industrial settings.
Framework 2A: MBA Skill Sets, Economic Development, and Poverty Alleviation
The bulk of the BOP markets comprise a socio-demographic profile of per capita income
of less than $3,000 per year (Hammond, et al., 2007; Prahalad, 2006; Prahalad & Hart, 2002). In
terms of population, the markets are quite large with nearly 4 billion people living below the per
MBA Effectiveness in non-OECD Countries 56
capita income threshold of $1,500 and another 1.5 to 1.75 billion with per capita annual incomes
between $1,500 and $20,000 (Prahalad & Hart, 2002). These markets are often underserved by
existing business models, rife with economic inefficiencies, and operate at a penalty compared to
established, well-functioning markets (Prahalad, 2006).
Hammond et al. (2007) estimated the total BOP market as worth in excess of $5 trillion.
The market contains several segments. Table 4 below shows a compilation of the estimated
spending in each of the several markets profiled by Hammond et al.
Table 4.
Market Size for Base of the Pyramid Markets
BOP Market
Estimated size
($ billions)
Health
$158.3
Information and communication
$56.7
Water
$20.1
Transportation
$179.3
Housing
$331.8
Energy
$433.4
Food
$2,894.0
Compiled, developed, and adapted by Gilbert (2009) from Hammond et al. (2007).
A reality that BOP markets have significant potential does not mean that the potential can be
easily accessed (Karnani, 2007). Many of the cost structures of multinational corporations would
pose a prohibitive barrier to serving BOP markets profitably.
Surveys of companies conducted by McKinsey & Company, a management consulting
company, indicated desirability of the MBA skill set in developing markets. Results showed that
two-thirds of the organizations sampled in developing economies recruited MBA graduates who
had studied abroad for key leadership positions (Eddy, Hall, & Robinson, 2006). Recent studies
in China suggested that a constraint on further growth was a lack of skilled managerial talent,
represented by the skills associated with MBA graduates (Lane & Pollner, 2008).
MBA Effectiveness in non-OECD Countries 57
Based on a range of analyses of economic growth and development of 13 countries,
including Australia, Brazil, France, Germany, India, Japan, the Netherlands, Poland, Russia,
South Korea, Sweden, the United Kingdom, and the United States, Lewis (2004a, 2004b),
posited that economic development cannot be assured solely with improvements in
infrastructure, technology, education, capital formation, and adequacy of healthcare. Lewis’
research suggested productivity growth as the key determinant of economic development and
associated reduction of poverty. Two key barriers to improved productivity described by Lewis
were policies that distorted competition and the lack of focus on consumer benefit. Lewis’
research suggested that MBA skill sets developed for the United States domestic market might
have a strong relevance to BOP markets.
More generally, Miyamoto (2008) reviewed several studies of foreign direct investment
(FDI) as a proxy for economic development. Results of the studies, spanning more than two
decades, have shown, beginning in the 1980s and 1990s, a shift towards a stronger correlation of
tertiary education levels and higher rates of foreign direct investment. Miyamoto posited that the
increase in correlation of FDI and education levels reflected a greater proportion of economic
development requiring a skilled workforce.
Cheng (2005) developed a model of direct and indirect effects of educational systems
related to economic development. Direct effects related primarily to developing and sustaining
human resources to meet urgent needs in developing countries for “high technology knowledge
and skills, continuous learning skills, creativity, communication skills, and an international
outlook” (p. 134). Indirect effects included overall workforce quality, the use of higher education
as a means of technology transfer for the technology of production, the improved abilities to
manage and adapt to change, and effective economic behavior of consumers.
MBA Effectiveness in non-OECD Countries 58
Stern (2002) developed a two-fold classification of necessary and sufficient frameworks
to support developing-country poverty alleviation. The first was the investment or institutional
climate, which was described to consist of effective and non-corrupt governmental services as
well as general infrastructure such as transportation, communication, energy, etc. Stern’s second
framework, termed empowerment, refers to a range of conditions skills to find jobs, start
enterprises, and manage companies, all of which require management education (Pfeffermann,
2005).
Sachs (2005, 2008) expanded on the institutional climate ideas of Stern (2002) and
suggested that a range of market-oriented reforms, including economic policy, fiscal
frameworks, national governance, culture, and geo-politics, which would act as precursors to the
ability of an economy to develop BOP markets. Such a set of preconditions seemed to be a
reflection of a more traditional view of development criticized by Lewis (2004a, 2004b). Sachs
(2005), however, advocated on-the-ground solutions to alleviate poverty, most of which were
seen as the responsibility of the private rather than the public sector. Although not specifically
mentioned, higher education and MBA skills, at some level, would be invoked by the preference
for private sector interventions (Sampson, 2005).
In a model referencing the work of Sachs (2005, 2008), Buckley et al. (2009) noted that
public policy must invest in skills development for the workforce, including high quality systems
with multiple levels of curriculum. Hopkins (2007) added to the argument for a skill-building
model in development and classifies development into three types: Type I, charitable donation;
Type II, company internal development of products for developing markets; and Type III, in-
country sustainable development projects. Hopkins’ Type III model explicitly involved capacity
building to permit self-sustaining local economic activity. Senge et al. (2008) echoed the role of
MBA Effectiveness in non-OECD Countries 59
education in sustainable development through a systems thinking approach. Maxwell (2009) also
emphasized the critical need of linking educational system improvement to skills for
participation in a more advanced market economy.
Millstein et al. (2009) emphasized the need for incremental change with skill and
capacity building providing a central core of the process. The model involved improvements in
skills and capacity both for the BOP market participants and companies desiring to enter the
markets. The market participants require skills and capacity that allow them to function in
market economies. In this regard the needed skills were defined in similar manner to the
democratic capitalism model of Carey (2004), which emphasized the need to build capability of
workers to operate as business owners in a market economy. Millstein also noted that companies
seeking to enter BOP markets need to adapt processes to allow for better understanding of
market needs and approaches to design that produce products for the large but low-income
demographics of BOP markets.
Easterly (2006) also focused on institutional climate elements with observations that the
historical bureaucratic models of foreign aid did little to alleviate poverty because of institutional
deficiencies. In addition, Easterly advocated market-based mechanisms to provide feedback and
accountability to development efforts. The ideas included creating a marketplace for aid
programs, which would require aid efforts to compete for donor dollars based on the preferences
of the poor. The model of poverty alleviation would require the organizational, managerial, and
leadership skills inherent in an MBA skill set.
Polak (2008) refuted what he termed myths of poverty eradication and provided a parallel
to Stern’s (2002) institutional climate. The myths included that charitable donations result in
poverty alleviation, that fostering generalized national economic growth ends poverty, and that
MBA Effectiveness in non-OECD Countries 60
multinational corporations are inherently the agent of change to address global poverty. Polak’s
alternative solutions involved specific design principles, which cast the world’s poor as
customers requiring affordable products rather than charitable recipients. In addition, much of
Polak’s focus was on creating markets to serve the needs of the poor, thereby considering them
consumers. As with the other authors reviewed thus far, Polak’s prescriptions appear to require
some amount of skill akin to those described in the MBA skill set.
Other authors have addressed the empowerment aspects of Stern’s (2002) framework.
Yunus (2007b) suggested that a model of social business was needed to address poverty. The
concept would entail a for-profit business model under which investors would recoup principle
but not profit from investments. A key aspect of the concept of social businesses would entail the
appropriate business management education. Yunus did not, however, provide details about the
range of managerial and leadership skills that might be required in such a business curriculum.
He also did not discuss the relative merits of an undergraduate versus graduate degree in
business.
Wilson and Wilson (2006) focused on a model of know-how transfer through direct
business relationships that allowed the transfer of the behaviors, technologies, and practices that
fostered successful business enterprises. Lodge and Wilson (2006a, 2006b) carried the idea
further by suggesting a World Development Corporation to provide a coordination framework
for development and poverty alleviation efforts involving multinational corporations,
governments, and society. Kappel and Ishegoma (2006) developed a model that suggested that
the ability to organize or formalize enterprises in developing countries and thereby improve
productivity depended in large part on human capital levels. A common and current theme is that
the skills typical of an MBA are plausibly contained in such a solution.
MBA Effectiveness in non-OECD Countries 61
Global studies by the International Monetary Fund (IMF) suggested that locally trained
MBAs in developing markets do not have requisite skills suitable for needed empowerment in
developing countries (Chaudhry, 2003). Results from the IMF study indicated that MBAs in
developing countries, like their counterparts in developed countries, were seen as possessing
sufficient analytical and technical skills but deficient in communication and collaboration skills.
Regional differences in the extent of perceived deficiency were noted by Chaudry (2003)
including a relative greater lack of communication skills in the East Asian area and noted
deficiencies in technical skills in South Asia and Africa.
Framework 2B: MBA Skill Sets as Globally Traded Educational Services
The extension of the MBA and associated skills sets outside of the United States may be
understood in the context of the history and trends of internationalization and the globalization of
higher education. Globalization and internationalization of higher education in today’s economy
are timely and critical issues (McBurnie, 2001). Globalization and internationalization are related
but distinct aspects of the development of higher education. Scholarship has been inherently
international for centuries, with scholars traveling from home nations to academic centers in
locations such as Bologna and Paris (Bassett, 2006). Kerr (1990) and Altbach (1998) described a
common element in the history of higher education as international migrant scholars. The
movement of scholars towards centers of learning such as the historical universities in Bologna
and Paris parallels the movement of students to United States-based institutions offering MBA
programs (Altbach, 1998). The other element of internationalization described by the cited
authors, the export of programs to learning centers abroad, represented the historical movement
of scholars returning to their countries to teach at local institutions.
MBA Effectiveness in non-OECD Countries 62
Globalization of higher education represents a somewhat different and more complex
phenomenon. In contrast to internationalization with its focus on the movement of ideas and
people between nations, globalization engenders additional definitions. Scholte (2005) described
five broad definitions of globalization. The first definition is internationalization, essentially
describing cross-border relationships. The second view of globalization is to equate it with
liberalization, connoting the removal of government-imposed restrictions on movement of
goods, services, and capital between countries. The third description of globalization is to equate
it with universalization, often represented by ubiquitous standards such as the Hindu-Arabic
numeral system or the Gregorian calendar. Scholte’s fourth definition of globalization is
modernization or westernization, meaning that modern economic structures and patterns supplant
historical economic and cultural patterns. The final definition of globalization is
deterritorialization, meaning that geography no longer describes social interactions in an
economy.
The history of the MBA demonstrates a level of globalization consistent with
internationalization. MBA programs have historically recruited students from abroad or opened
branch campuses in foreign countries. However, globalization has not resulted in a uniform
curriculum conducive to a consistent view of MBA skill sets (Lorange, 2005). The globalization
concepts of liberalization, modernization, and deterritorialization signal an opportune area of for
research about the importance of MBA skill sets in developing countries. The relationship
between the concepts of globalization described above and potential impacts on economic
development and poverty alleviation in developing countries suggests an enhanced importance of
MBA skills in developing economies.
MBA Effectiveness in non-OECD Countries 63
Emerging concurrently with the development of concepts of globalization and market-
based models of economic aid, described in detail in the following section, has been a view that
education itself can be traded internationally as a service and that the trade in education services
can foster economic development (Sampson, 2005; Zhai & Hertel, 2005). In 1995, the World
Trade Organization (WTO) replaced the General Agreement on Trade and Tariffs (GATT),
established in 1947 to liberalize trade in goods among 152 member states (WTO, 2007). The
treaty creating the WTO in 1995 addressed, for the first time in the history of the GATT or WTO
trading systems, cross-border trade in services under the General Agreement on Trade in
Services (GATS) (Knight, 2002).
The inclusion of educational services in GATS presented a novel concept in the
internationalization of higher education because subjecting educational services to international
trade rules implied that the educational sector should be liberalized (Knight, 2003). Education
services under the GATS framework was divided into four classifications: primary education
services, secondary education services, higher education services, adult education, and other
education services (WTO, 1991). Graduate programs such as the MBA fall within the definition
of higher education services. The idea to liberalize trade in educational services was contained in
the Doha round of negotiations, which commenced in 2001 and is presently in a suspended status
with discussions about resumption in 2009 (WTO, n.d.).
The advent of classifying higher education as a set of cross-border traded services created
an environment in which higher education programs such as the MBA programs and graduates
spread to developing countries (Naidoo, 2007). The spread of the MBA degree and programs
from United States-centric roots appears to be at its inception. Using recipient school location for
Graduate Management Admission Test (GMAT) results as a proxy for internationalization of the
MBA Effectiveness in non-OECD Countries 64
MBA, the share of results sent to schools located in the United States remains high, at nearly
82% in 2007, indicating that most GMAT test takers sought admission to programs in the United
States (GMAC, 2008).
The GATS defined four services modalities, which represented the manner in which
services are traded (Knight, 2003). The modalities included Mode 1—representing supply of
services across border, Mode 2—denoting a movement of the consumer to the service, Mode 3—
describing a foreign presence by the service provider, and Mode 4—characterizing the
movement of the service provider to a foreign venue. The modalities are explained with
examples in Table 5 below.
Table 5.
GATS Mode of Supply for Services
Mode of Supply
Explanation
Higher education
example
Mode 1:
Cross- border supply
Provision of the services where the
service but not necessarily the
customer or service provider crosses
the border.
Online instruction where
the learner and faculty
are in different
countries.
Mode 2:
Consumption abroad
The provision of a service where the
consumer of the service moves to the
country of the supplier to receive the
service.
Students studying
abroad.
Mode 3:
Commercial
presence
The service provider establishes a
commercial presence in another
country to provide services.
Foreign branch campus
of a domestic university
program.
Mode 4: Presence of
natural persons
Persons travel to another country,
usually on a temporary basis, to
provide service.
Faculty working abroad.
Compiled, developed, and adapted by Gilbert (2009) from WTO (2005) and Knight (2003).
MBA programs in developing countries are an area that would appear ripe for a dramatic
increase. Saner and Fasel (2003) estimated that the value of annual trade in educational services
in 1999 was $30 billion, nearly 50% of the trade in financial services. The reasons that the
MBA Effectiveness in non-OECD Countries 65
potential may not have been realized lie in the barriers to trade that exist for those viewing higher
education as a service for trade.
As noted by Altbach (1998), trade in higher education services have been historically
characterized by Mode 2 or 4, with movement either of faculty or students to a learning location.
As described by Blasius (1918), a Mode 3 supply of MBA programs, as first seen in Europe after
WWII, has been limited in extent, scope, and reach. Knight (2002) noted that the level and
intensity of potential trade in educational services has been hampered by a range of barriers to
trade. Examples include the required use of local suppliers for Mode 1 types of deliveries,
restrictive visa requirements for Mode 2 consumption, the inability to obtain local business
permissions and licenses for Mode 3 models, and stringent immigration and work permit rules
for the Mode 4 presence of natural persons.
The notion of market-based models of economic development as preferable to
developmental aid models is complementary to the concept of increased trade in educational
services. Increased access to higher education enabled by liberalized trade in educational
services promises an effective adjunct to market-based developmental aid (IBRD, 2000).
Increases in the types and volumes of traded education services with implementation of the
GATS, following conclusion of the current Doha Development Round of World Trade
Organization negotiations, could create pressure toward greater consistency and standardization
of approaches to and content in higher educational programs (Knight, 2002). Such a
development could suggest a greater level of consistency for MBA skill sets. The pressure
towards consistency appears contrary to what would be a putative need for differentiation in
order to deal with the unique needs of bottom of the pyramid markets, as was discussed in the
preceding section.
MBA Effectiveness in non-OECD Countries 66
Conclusion
By tracing the literature related to the development of the MBA skill set since inception
of the degree and examining emerging approaches to global poverty alleviation through business
or market-based approaches, the relevance of the MBA skill set in the large BOP markets was
called into question. On the one hand, authors such as Rocha and Ghoshal (2006) and Hawawini
(2005) asserted that the MBA skills developed for what was, historically, a United States
domestic model of business, and business education lacked a good fit to concerns of broader
global social responsibility. On the other hand, a range of authors including Lewis (2004a,
2004b), Sachs (2005, 2008), Easterly (2006), Yunus (2007a), and Wilson and Wilson (2006)
advocated a variety of market-driven, business-based approaches to global poverty alleviation,
which invoked skills at least similar to the MBA skill set developed for United States-based
situations. A part of that market-driven approach to poverty alleviation may involve the use of
traded educational services themselves as contemplated by Saner and Fasel (2003). The gap in
the literature on MBA skills and MBA program efficacy, and the focus of the proposed research,
is whether the MBA skill set developed in and for the United States domestic market is relevant
to leading and managing enterprises in BOP markets.
Summary
Development of MBA skills set models can be traced for over a century. Over that
period, the skills needed by an MBA graduate evolved from purely pragmatic skills to a mixture
of pragmatic and theoretical skills (Daniel, 1998). During the decades-long progression of the
MBA skill set and associated curriculum, periodic questioning of the relevance of the MBA skill
set for graduates has been common (Mintzberg, 2005). The most recent round of criticism has
MBA Effectiveness in non-OECD Countries 67
included notions that the MBA skill set does not address the broader context of global social
responsibility (Hawawini, 2005; Rocha & Ghoshal, 2006).
The latest round of criticism came at a time when globalization was influencing nearly all
aspects of business (Friedman, 2007) and the world’s poor were increasingly seen to represent
market opportunities rather than charitable burdens (Prahalad, 2006; Wilson & Wilson, 2006).
The emergence of notions of bottom or base of the pyramid (BOP) markets as a key part of the
solution to global poverty invokes skill sets at least similar to the MBA skill set developed in
over a century with the MBA degree. The development literature, however, does not address the
relevance and usefulness of the skills in the BOP context. The apparent lack of any significant
research about the question of relevance provides a basis for the proposed research. The
methodology that guides the proposed research is described in the following chapter.
The strands of literature reviewed in chapter 2 of this study provided an overview of
influences that are arguably pertinent to the relevance of MBA skill sets to BOP markets. In
chapter 3, an analysis of MBA skill sets in BOP markets using a survey instrument is described.
The data collection outlined in chapter 3 provides a basis of comparison between perceptions of
skill sets in the United States, a developed country, with non-OECD countries serving as a proxy
for BOP markets.
MBA Effectiveness in non-OECD Countries 68
CHAPTER 3: METHODOLOGY
Contemporary economies exist in a network of globally interconnected stakeholders and
impose challenges to existing approaches to management education (Commission on the Private
Sector & Development [CPSD], 2004; EFMD, 2005). Within the global economy, developing
countries comprise nearly 70% of the world’s population and form huge existing and potential
consumer and product markets (Hammond, et al., 2007). Market dynamics in developing
countries may dictate markedly different approaches to business from the prevailing models of
multinational corporations and education that traditionally prepare business leaders (Sachs,
2005). Prahalad (2006, 2010) described the huge collection of global market of consumers in
developing countries, numbering in the billions of consumers, as “bottom of the pyramid
markets” (p. 4). In the face of a significant global market, questions were raised about the
appropriateness of the skills developed by management education, including the MBA (Ghoshal,
2005; Mintzberg, 2004). Such questions indicated a need for research about whether MBA skill
sets suitable for developed economies retain relevance in bottom of the pyramid-markets.
The problem addressed by the research was whether the current MBA curriculum of
business schools is effective for developing the required managerial and leadership skills for
employers in the 164 countries out of 194 in the world that are non-OECD countries. The non-
OECD countries account for 70% of the world’s population, form the bulk of the lesser and least
developed countries and markets in the world, and are BOP markets (Hammond, et al., 2007).
The MBA is often seen as synonymous with the highest level of business management and
leadership skill (Mintzberg & Gosling, 2002). Market-based managerial and leadership skills are
viewed as critical for private sector development activities to operate and address poverty in
BOP markets, estimated at nearly four billion individuals. Despite the value given MBA skill
MBA Effectiveness in non-OECD Countries 69
sets, the relevance of the skill sets is questioned with respect to BOP markets (Hammond &
Prahalad, 2004).
The purpose of quantitative comparative methods research was to compare the findings
of Brooks (2006) about the perceived importance of MBA skill sets and the effectiveness of
MBA programs in the United States to the same in non-OECD countries as a proxy for
developing countries. The population sampled by Brooks was United States-based and
comprised MBA program directors and corporate recruiters of MBA graduates. Brooks
examined the significance of differences between the perceptions of the importance of 12 MBA
skill sets between United States-based MBA program directors and corporate recruiters of MBA
graduates. Brooks also examined the difference in perceptions between United States-based
MBA program directors and corporate recruiters of MBA graduates with respect to the
perception of effectiveness of MBA programs in developing 12 MBA skill sets. In this study, the
Brooks study results were compared to those from non-OECD respondents to determine whether
there was a significant difference between perceptions of the importance of the 12 MBA skill
sets as well as the effectiveness of MBA program curriculum between the United States-based
population in Brooks’ study and a population situated in developing countries, represented by
being situated in non-OECD countries. In addition, the study performed inter-group comparisons
examining potential significant difference in perceptions of MBA curriculum among MBA
program directors, corporate recruiters of MBA graduates, and MBA graduates situated in non-
OECD countries.
In Chapter 2, the literature was reviewed to show the evolution of MBA skill sets as well
as parallel developments in the knowledge management area. Two key drivers for a potential
shift in the perceptions of MBA skills were also described: the increasing international trade in
MBA Effectiveness in non-OECD Countries 70
educational services and the perceived role of workforce education and skills as a means to
economic development and poverty alleviation. Overall, the literature suggested that past
perceptions of required MBA skill sets might change under the pressures of traded educational
services and the economic development needs in developing economies.
In chapter 3, the research design and its appropriateness for the study are discussed. The
target population, sampling methodology, and the respondents are presented, followed by the
geographic location of the study population. The appropriateness of the instruments and uses of
the instruments are documented and a plan for data collection is presented. Each research
question and its respective hypotheses are presented along with the associated data analysis
methods to be used to test the hypotheses and answer the research questions. Finally, factors
influencing the reliability and validity of the proposed research are discussed, followed by a
summary of the chapter.
Quantitative Research Design
The design of the present research study employed a cross-sectional survey instrument to
measure perceptions of desirable MBA skills by three groups who interact with MBA graduates
operating in developing economies. For the purposes of the proposed research, developing
economies were countries that are not members of the OECD. Non-OECD countries account for
70% of the world’s population and form the bulk of the lesser and least developed countries and
markets; non-OECD countries are therefore representative of BOP markets (Hammond, et al.,
2007; Hse, et al., 2008). A cross-sectional survey design was chosen because it is suitable to
measure the attitudes, opinions, and values of respondents in two or more groups (Creswell,
2008).
MBA Effectiveness in non-OECD Countries 71
The development of the design involved reviewing two surveys about the appropriateness
of MBA skill sets. The first, a recruiters’ survey developed by the GMAC (2007a) was
eliminated because that organization would not grant permission to use the survey instrument in
a dissertation. The second very similar survey, a domestic survey conducted by Brooks (2006),
covered the same types of topics and was considered suitable for use in non-OECD countries.
Brooks’ instrument appeared to fulfill the requirements for a study intending to provide insight
into whether a need exists for a different MBA skills sets when operating in a bottom of the
pyramid markets. Permission to use Brooks’ instrument was obtained as shown in Appendix D.
Brooks’ (2006) quantitative comparative method was loosely based on importance-
performance analysis, first introduced by Martilla and James (1977). The method subsequently
has been widely used to generate two-dimensional Cartesian action grids suggestive of levels of
needed resource commitment: emphasis needed, potential under resourcing, potential over
resourcing, and low needs (Huan & Beaman, 2007; Kitcharoen, 2004). Vandermerwe and Gilbert
(1991) developed a comparative quantitative approach using clustering of results on the
Cartesian action grid and inferential statistics to test for similarity in different populations sub-
sets when rating the same importance and performance attributes. The Vandermerwe and Gilbert
method was used for analysis in the present research study.
Independent and Dependent Variables
The dependent variable is the classification of a respondent’s location in an OECD or
non-OECD country. The variable was determined by exclusion. Any respondents from Australia,
Austria, Belgium, Canada, the Czech Republic, Denmark, Finland, France, Germany, Greece,
Hungary, Iceland, Ireland, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, New
Zealand, Norway, Poland, Portugal, the Slovak Republic, Spain, Sweden, Switzerland, Turkey,
MBA Effectiveness in non-OECD Countries 72
the United Kingdom, and United States represent the OECD signatory countries and are
considered to represent OECD countries. Respondents from all other countries fit the definition
of non-OECD countries. Although limited responses were captured for OECD situated
respondents, the data from such responses were not used in the analysis in the present research
study.
The survey instrument used a paired rating model termed importance-performance
analysis (IPA), first introduced by Martilla and James (1977). A typical approach to the use of
IPA involves the development of a four-quadrant grid as shown in Figure 1 below. For purposes
of this study, the horizontal dimension was changed from performance to effectiveness in order
to reflect better the wording in the survey instrument used.
Figure 1.
Importance effectiveness analysis grid.
Effectiveness
Lower
Importance
Higher
Higher
Importance
Inaction war rant ed
Maintain performanceImpr ove performance
Lower
Reduce performance
Effectiveness
Developed by Gilbert (2009) adapted from Martilla and James (1977).
MBA Effectiveness in non-OECD Countries 73
For purposes of tests of statistical association, the independent variable in the survey
consisted of perceptions relating to 12 MBA skills described in Table 6.
Table 6.
MBA Skill Sets
Skill
Definition
1. Quantitative skills
The ability to use and understand quantitative information.
2. Technology literacy
The ability to use responsibly appropriate technology to
communicate; solve problems; and access, manage, integrate,
evaluate, and create information to improve learning in all subject
areas and to acquire lifelong knowledge and skills.
3. Creative problem solving
The process of dealing with change by generating new ideas and
approaches that have value and contribute to business growth and
profitability; the ability to deal with unanticipated variables.
4. Integrative thinking/ ability
to see connections in
disparate information
The application of knowledge from different areas of study that
leads to greater creativity and insights into approaching complex
problems.
5. Adaptable decision-making
and execution in ambiguous
and complex environments
The ability to makeand executedecisions in an environment
based on inter-related, multi-dimensional, incomplete, and/or
conflicting information.
6. Critical/analytical thinking
Reasonable, reflective thinking that enables an individual to reach
logical and well-informed conclusions; continually looking for the
reasons behind or the rational for the information presented.
7. Strategic thinking
A leader’s ability to plan for competition and deliver customer
value and organizational growth; differentiating a business from
competitors.
8. Oral and written
communication skills
The ability to read and comprehend information, to express ideas
effectively in written and spoken form, and to listen attentively.
9. Global/cross-cultural
awareness
An understanding of global dynamics as an inter-connected system;
an awareness of others’ characters and belief systems influenced by
race, ethnicity, religion, gender, social status, and environment.
10. Ethical / Socially
Responsible Outlook
A positive role in society that creates mutual benefit for oneself and
others
11. Emotional intelligence/self-
awareness
An individual’s abilities in five dimensions: knowing one’s
emotions, managing emotions, motivating oneself, recognizing
emotions in others, and handling relationships.
12. Collaboration in diverse
teams The interaction of two or more individuals in an exchange of
knowledge toward a common goal, influenced by such attributes as
race, ethnicity, gender, and other factors to detect individual
differences.
From Corporate and Academic Views on the Importance of an MBA Graduate Skill Set and the Effectiveness of
the United States Master's of Business Administration Curriculum in Developing those Skills by L. M. Brooks
(p. 196-206). Copyright 2006 by Brooks, Lynn M. Used with permission from the author.
MBA Effectiveness in non-OECD Countries 74
A comparative quantitative approach involving the use of t-tests of independence was
applied to test the significance of the differences in perceptions between the sample for the
proposed research and Brooks’ (2006) sample. The first series of significance tests, relating to
hypotheses H1, H2, H3, and H4, examined the significance of differences in the variable sets
between the research in this study and the Brooks’ study. A t-test test of independence of sample
means was used to examine if there was a statistical independence in aggregate indicated by
mean values of survey responses in Brooks and the proposed study for the 12 MBA skill sets for
importance and effectiveness, respectively. The t-tests were applied separately for MBA program
administrators and for recruiters of MBA graduates in both populations. In this case, some of the
MBA graduates were included in the recruiter section, when they indicated that they recruited
MBA graduates. The approach was a supported independent t-test analysis in SPSS® (Muijs,
2004; Norušis, 2010). The population in Brooks’ study did not contain MBA graduates; therefore
to the extent that graduates were not also recruiters the tests of significance for hypotheses H1,
H2, H3, and H4 do not include MBA graduates.
Where significant differences were identified between the present study and Brooks’
(2006) study, a need for differentiating skill sets for United States domestic instruction and non-
OECD situated settings could be indicated. The t-test alone does not allow for additional
qualification of the level and cause of the differences; however, the IEA charts can be used to
inform understanding of the significances and provide insight into the sources of differences.
The second series of significance tests, relating to the hypotheses H5 and H6, used an
analysis of variance of independence to examine whether a difference exists among MBA
program directors, recruiters of MBA graduates, and MBA graduates in non-OECD countries
about the importance of MBA skill sets and efficacy of MBA programs in developing those skill
MBA Effectiveness in non-OECD Countries 75
sets. Unlike the comparison to Brooks’ (2006) data, where only the mean value and variances are
available for comparison, the analysis for the non-OECD sub-populations can be accomplished
using actual survey response through the ONEWAY ANOVA function in SPSS® for each of the
12 MBA skill sets (Muijs, 2004; Norušis, 2010). Levene’s test for equality of variances was
applied to verify the assumption of approximately equal variances occurs. In cases where
Levene’s test suggested that the assumption of equal variances did not hold, the assumption of
equal variances was rejected, and Welch’s asymptotic F-statistic was then substituted for the
standard F-statistic to test equality of group means in cases. The Welch F-Statistic is preferable
when the assumption is equal variances does not hold (Green & Salkind, 2007).
The third series of analyses involved the descriptive and analytical approach used by
Vandermerwe and Gilbert (1991). The approach was used to plot coordinates from the survey
responses. In this descriptive approach, the Y and X-axes represent the numeric means of all
importance and effectiveness scores, respectively. Each individual attribute is assigned an x or y
value and plotted, based on its deviation from the grand mean of the x or y values, respectively.
Because grand means are used to set the axes, the approach forces separation of plots into the
four quadrants of the diagram rather than allowing clustering in one quadrant. The graphic is
interpreted based on both the quadrant as well as the proximity of the scores in clusters to
determine similar ratings for different skills.
Appropriateness of Design
Discussion about the appropriateness of design falls into two areas. First, the use of the
questionnaire design is discussed. Second, the appropriateness of quantitative methods, and
specifically the t-tests of independence and analysis of variance, to determine tests of
independence from the survey data is discussed. Last, the suitability of importance-effectiveness
MBA Effectiveness in non-OECD Countries 76
analysis (IEA) on informing the interpretation of the rating of skills is addressed.
Appropriateness of the Questionnaire Design
The questionnaire design by Brooks (2006) allowed several statistical comparisons to
determine if a significant difference exists between the United States domestic sample studied by
Brooks and the international, non-OECD county sample for the proposed study. The independent
variable for the study is the type of country of residence of respondent, either the United States
or a non-OECD country. The dependent variable was measured as a function of the mean of
responses to a Likert-type, semantic scale measuring agreement with a statement. The statement
describes the importance of 12 MBA skills, in the first part of the question, and MBA-program
effectiveness in developing the same 12 MBA skills in the second part of the question.
A quantitative method using a survey was chosen because such methods are an
appropriate non-intervention approach and are focused on describing population characteristics
and preferences (Creswell, 2008). The appropriateness of the questionnaire design is further
illustrated by the use of a similar survey by the GMAC (2005a). The types of survey
measurement scales are also appropriate (Trochim & Donnelly, 2007).
Appropriateness of the Quantitative Methods
The use of t-tests to compare Brooks (2006) data and the data collected in this study were
appropriate and supported by the literature. Alreck and Settle (2004) suggested that the Likert-
type scale responses, or the dependent variables in this study, when assigned a numerical value,
are suitable to describe perceptive reactions. Alreck and Settle further noted that in designs
where the independent variables are categorical and the dependent variables are numeric, t-tests
are appropriate to determine association between different samples or sample groups.
MBA Effectiveness in non-OECD Countries 77
An analysis of variance approach was an appropriate measure of association for the non-
OECD respondent groups (Alreck & Settle, 2004). The present research was structured to sample
three subgroups of respondents from non-OECD countries: corporate recruiters, MBA program
administrators, and MBA graduates. Brooks did not include the third sample subgroup, namely,
MBA graduates. Inclusion of three groups in the proposed study allows inter-group comparisons
to determine if a significant difference exists in perceptions about the importance of MBA skills
sets and MBA program efficacy in delivering the required skills among the three groups. In this
case an analysis of variance (ANOVA) test is appropriate to test for differences among
subgroups (Alreck & Settle, 2004). The use of the ANOVA follows the model used in Brooks
(2006).
Appropriateness of the Importance-Effectiveness Design
The technique of importance-effectiveness analysis used in this study was a variant on
importance-performance analysis (IPA). For purposes of this study, IEA and IPA were
considered as equivalent. IPA has been used to prioritize service attributes in a wide range of
service quality contexts. Brooks (2006) used the IPA without identifying the method.
Vandermerwe and Gilbert (1991) applied the methodology to a service attribute study for
corporate functions. Kitcharoen (2004) applied IPA in a university setting to measure service
quality attributes. Alberty and Mihalik (1989) used the IPA in an adult education context to
assess the effectiveness of educational instruction.
Van Ryzin and Immerwahr (2007) suggested a need to create a derived importance and
performance score in order to control for overall tendencies in the data. The approach taken by
Van Ryzin and Immerwahr involved a regression correlation to an overall satisfaction variable.
Although there is merit in such an approach, Brooks’ (2006) questionnaire did not contain an
MBA Effectiveness in non-OECD Countries 78
overall rating or ranking variable for the importance of group of skills. Similarly, Brooks did not
include a variable for the overall rating or ranking of the effectiveness of MBA programs in
delivering graduates with the desired skills sets. The latter variable may be akin to a generalized
rating of the efficacy of MBA programs in producing graduates with the desired skill sets.
The approach used by Vandermerwe and Gilbert (1991) achieved a similar degree of
relativization using the mean of all importance scores in the sample as the zero intercept for the
Y axis and the numeric mean of the performance, in this case program effectiveness, as the zero
value for the X axis. Using the model avoided the need for an additional variable. The
similarities and differences may permit conclusions to be drawn about the desired and required
MBA skill sets for non-OECD countries. As shown above, the use of the IEA as a descriptive
analytical method is supported by both practice and the literature.
Research Questions
Central Research Questions
The research questions are divided into three groups. The first group (questions one and
two) asks whether a difference exists between United States-based MBA program administrators
and MBA program administrators situated in non-OECD countries with respect to perceptions of
importance of MBA skill sets and efficacy of MBA programs. The second group (questions three
and four) asks whether a difference exists between United States-based MBA program
administrators and MBA program administrators situated in non-OECD countries with respect to
perceptions of importance of MBA skill sets and efficacy of MBA programs. The third group
(questions five and six) ask whether differences exist among non-OECD situated MBA program
administrators, recruiters of MBA graduates, and MBA graduates with respect to perceptions of
importance of MBA skill sets and efficacy of MBA programs. The six questions are presented
MBA Effectiveness in non-OECD Countries 79
below.
1. What differences, if any, exist between United States-based MBA program directors
population sampled by Brooks (2006) and MBA program directors situated in non-
OECD countries with respect to the perception of the importance of MBA skill sets?
2. What differences, if any, exist between United States-based recruiters of MBA
graduates population sampled by Brooks (2006) and recruiters of MBA graduates
situated in non-OECD countries with respect to the perception of the importance of
MBA skill sets?
3. What differences, if any, exist between United States-based MBA program directors
population sampled by Brooks (2006) and MBA program directors situated in non-
OECD countries with respect to the perceptions of effectiveness of MBA programs in
developing of MBA skill sets?
4. What differences, if any, exist between United States-based recruiters of MBA
graduates population sampled by Brooks (2006) and recruiters of MBA graduates
situated in non-OECD countries with respect to the effectiveness of MBA programs in
developing of MBA skill sets?
5. What differences, if any, exist among subgroups of MBA program directors,
recruiters of MBA graduates, and MBA graduates in non-OECD countries with
respect to perceptions of the importance of MBA skills sets?
6. What differences, if any, exist among subgroups of MBA program directors,
recruiters of MBA graduates, and MBA graduates in non-OECD countries with
respect to perceptions of the effectiveness of MBA programs in developing of MBA
skills sets?
MBA Effectiveness in non-OECD Countries 80
Quantitative Research Hypotheses
The key quantitative comparative method hypotheses to be tested, as based on the
questions listed above, are as follows:
H01: No significant difference in perceptions exists between the study population of
United States-based MBA program directors in Brooks (2006) and the study
population of MBA program directors situated in non-OECD countries with respect
to their ratings of the importance of MBA skill sets.
HA1: A significant difference in perceptions exists between the study population of
United States-based MBA program directors in Brooks (2006) and the study
population of MBA program directors situated in non-OECD countries with respect
to their ratings of the importance of MBA skill sets.
H0.2: No significant difference in perceptions exists between the study population of
United States-based recruiters of MBA graduates in Brooks (2006) and the study
population of recruiters of MBA graduates situated in non-OECD countries with
respect to their ratings of the importance of MBA skill sets.
HA2: A significant difference in perceptions exists between the study population of
United States-based recruiters of MBA graduates in Brooks (2006) and the study
population of recruiters of MBA graduates situated in non-OECD countries with
respect to their ratings of the importance of MBA skill sets.
H03: No significant difference in perceptions exists between the study population of
United States-based MBA program directors in Brooks (2006) and the study
population of MBA program directors situated in non-OECD countries with respect
MBA Effectiveness in non-OECD Countries 81
to their ratings of the effectiveness of MBA programs in developing an MBA skills
sets.
HA3: A significant difference in perceptions exists between the study population of
United States-based MBA program directors in Brooks (2006) and the study
population of MBA program directors situated in non-OECD countries with respect
to their ratings of the effectiveness of MBA programs in developing an MBA skills
sets.
H04: No significant difference in perceptions exists between the study population of
United States-based recruiters of MBA graduates in Brooks (2006) and the study
population of recruiters of MBA graduates situated in non-OECD countries with
respect to their ratings of the effectiveness of MBA programs in developing an MBA
skills sets.
HA4: A significant difference in perceptions exists between the study population of
United States-based recruiters of MBA graduates in Brooks (2006) and the study
population of recruiters of MBA graduates situated in non-OECD countries with
respect to their ratings of the effectiveness of MBA programs in developing an MBA
skills sets.
H05: No significant difference in perceptions exists between MBA program directors,
recruiters of MBA graduates, and MBA program directors in non-OECD countries
with respect to their ratings of the importance of MBA skill sets.
HA5: A significant difference exists in perceptions between MBA program directors,
recruiters of MBA graduates, and MBA program directors in non-OECD countries
with respect to their ratings of the importance of MBA skill sets.
MBA Effectiveness in non-OECD Countries 82
H06: No significant difference in perceptions exists between MBA program directors,
recruiters of MBA graduates, and MBA program directors in non-OECD countries
with respect to their ratings of the effectiveness of MBA programs in developing
MBA skills sets.
HA6: A significant difference in perceptions exists between MBA program directors,
recruiters of MBA graduates, and MBA program directors in non-OECD countries
with respect to their ratings of the effectiveness of MBA programs in developing
MBA skills sets.
Population
The population studied included three groups of academic and business respondents
situated in non-OECD countries: MBA program directors, recruiters of MBA graduates, and
MBA graduates. MBA program directors were located and identified using the United Nations
Educational Scientific and Cultural Organization Portal on Higher Educational Institutions
(UNESCO, n.d.), a public database, web searches, as well as a list of institutions receiving the
GMAT scores provided by the GMAC (GMAC, 2005b). MBA recruiters and graduates were
recruited by including a link to the web survey in various e-mail newsletters such as MBAs
Without Borders (http://www.mbaswithoutborders.org) and MBA Global Net
(http://www.mbaglobalnet.com), social media sites such as facebook® and Linkedin®, as well as
a request to MBA program directors to forward the link to MBA graduates and recruiters. None
of the organizations providing a link to the survey itself have access to survey respondents or the
data collected from survey respondents.
Data from the GMAC reports of the GMAT institutional codes, representing MBA
programs to which scores are sent, indicated that the number of programs in non-OECD
MBA Effectiveness in non-OECD Countries 83
countries totals approximately 120 (GMAC, 2005b). The number of MBA graduates in non-
OECD countries is difficult to estimate but would likely number in the tens of thousands.
Similarly, the number of recruiters of MBA graduates in non-OECD countries is difficult to
estimate due to the lack of any database of total businesses and then those that would recruit
MBA graduates.
Population validity, referring to the extent to which results can be generalized to a larger
group, is an issue in studies that use convenience samples (Trochim & Donnelly, 2007). The
proposed study was not structured to generalize results to all populations of potential respondents
in non-OECD countries. The study was designed to provide insight into the differences in the
required MBA skill sets between developed or OECD countries and developing or non-OECD
countries. The limitations of the sampling frame implied that the data may be limited to
providing insight and suggestions for further analysis rather than definitive statements with
respect to the population.
Sampling Frame
The sampling frame for the proposed study consisted of respondents in non-OECD
countries: corporate recruiters, MBA graduates, and MBA program directors. The sample was a
convenience or a purposive non-probability sample. A non-probability sampling method does not
allow estimation of the probability of each member of the population being selected for the
sample (Alreck & Settle, 2004; Ary, Chester-Jacobs, Razavieh , & Sorensen, 2005).
Alreck and Settle (2004) suggested that a minimum of a known population, in this case
the MBA program administrators, should be around 10% or 30 respondents. In the case of large
uncertain populations, Alreck and Settle suggested an ideal sample of 100. Norušis (2010) noted
that for both t-tests and analysis of variance methods that a sample size as small as 20 is
MBA Effectiveness in non-OECD Countries 84
sufficient. The proposed sampling methodology was designed to elicit responses from at least 30
MBA program directors, 100 MBA graduates, and 100 recruiters of MBA graduates. In the event
that the survey was unable to elicit at least 30 MBA program director responses, the 10% rule
suggested that 12 to 15 could be sufficient given an estimated 120 GMAT score recipient
business schools in non-OECD countries. As noted by Norušis a sample of as few as 20 MBA
program recruiters permits a valid analysis with lowered confidence levels when rejecting a null
hypothesis. Lastly, the study results were not be compromised with a response of less than 100
surveys from MBA graduates because Brooks (2006) did not include graduates, therefore no
direct comparison using t-tests was possible. Descriptive statistics can be performed from a
sample of less than 100 and may thus provide insight into the perceptions of MBA graduates in
non-OECD countries.
The sample of respondents was accessed by sending requests to e-mail addresses
available from listings provided the United Nations Educational Scientific and Cultural
Organization Portal on Higher Educational Institutions (UNESCO, n.d.), a public database. Links
to the survey were also included in the email newsletters of the MBA Global Net as well as that
of MBA without Borders. Both of the groups reach MBA recruiters, graduates, and program
directors, a significant proportion of which are located in non-OECD countries. Additional
efforts were undertaken to locate recruiters, program directors, and graduates through a network
of schools operating international programs using internet-based directories and search engines
and through the use of social media groups such as facebook® and Linkedin® as well as a
researcher community MyNetResearch.com®.
The survey results were collected and analyzed using a collection of both descriptive and
inferential statistics. The first analyses, using the Statistical Package for the Social Sciences
MBA Effectiveness in non-OECD Countries 85
version 13 (SPSS®) Compare Means, Independent Samples T-Test routine compared the survey
results for non-OECD respondents with the United States-based respondents in Brooks (2006)
concerning perceptions about MBA skills needs and program effectiveness. Further analysis also
using the ONEWAY analysis of variance function was performed to examine intergroup
similarities and differences among recruiter, program director, and graduate sub-population
samples for the non-OECD sample.
Confidentiality and Informed Consent
Confidentiality is of paramount importance in research (Cooper & Schindler, 2008). At
the beginning the survey, each respondent was required to provide assent to the informed consent
agreement (see Appendix B) before being allowed to complete the remainder of the survey. Only
if the potential respondent assented was the remainder the survey accessible for completion (see
Appendix C). The restriction on availability of the actual survey questions was achieved with
logical paths in the electronic version of the survey that allow completion of the questions only if
assent is given as shown in Figure 13 in Appendix C.
A data file containing consent forms, demographic data of the person consenting, and the
indication of assent were separated from the results of the survey and stored on a CD ROM drive
stored in a locked and secured location. The data file containing the consent forms and associated
personal information was not made available to any person at any time. When data collection and
analysis was complete, the consent data file was destroyed by shredding the CD. At no time were
respondents identified by name, e-mail address, or internet protocol (IP) address in the data
reporting process. Data were presented only in aggregate form.
The data in the survey files created by SurveyMonkey.com®, which contain both
personal identifying information and IP addresses, were maintained in a password-protected file
MBA Effectiveness in non-OECD Countries 86
(SurveyMonkey.com, n.d.). The SurveyMonkey.com® subscription for the project is a paid
subscription. The secure sockets layer (SSL) level of transmission encryption of survey data was
not selected because of the exempt nature of the study. Data collected under subscription are
stored in a secure data center with network intrusion protection. All electronic media not stored
on a password-protected server data store as well as paper print outs of the data were stored in a
locked file cabinet. All server files, electronic media, and paper copies will be destroyed three
years after completion of the study by file deletion or physical destruction through shredding.
Geographic Location
The study accessed respondents in multiple geographic locations. MBA program
directors were located through directories of programs operating in non-OECD countries. MBA
graduates and recruiters were located more generally using links in e-mail bulletins from MBAs
Without Borders, with 2,000 members (Gilbert & Dehtiar, 2008), and MBA GlobalNet, with
over 18,000 members (MBAGlobalNet, n.d.). Graduates and recruiters were also located using
social media sites such as facebook® and Linkedin®. Potential respondents located both in
OECD and non-OECD countries may have received the link or information to lead them to the
web survey. Respondents were asked to provide their locations in the demographic questions
presented immediately after the informed consent agreement. The location options provided are a
list of all countries of the world and an answer to the question is required to proceed with the
questionnaire. Respondents were given the option to specify a country not on the list. A further
question posed captured if respondents were located or living in one country but working in
another. Responding to the question was optional. Responses from respondents located or living
in OECD countries were captured but were not analyzed for purposes of the proposed research.
MBA Effectiveness in non-OECD Countries 87
Instrumentation
The intent of the quantitative non-experimental comparative study was to test for
significant differences of importance of 12 MBA skills and MBA-program effectiveness in
developing those skills for a population of MBA program administrators, recruiters of MBA
graduates, and graduates in non-OECD countries and compare those results to a comparable
United States-based domestic population studied by Brooks (2006) (see Appendix C). The
quantitative aspects of Brooks’ study involved a self-administered, web-based quantitative
instrument profiling specific skills. The instrument was loosely adapted from the 2005 GMAC
Recruiters’ Survey (Brooks, p. 42).
The survey instrument (see Appendix C) used to collect data for the proposed research
was validated by Brooks (2006). The use of the instrument in an international context was
appropriate because the intent is to determine if the MBA skill sets studied by Brooks in a United
States-based domestic context demonstrate similar ratings of importance and developmental
efficacy for MBA programs in non-OECD countries.
Data Collection
Data collection was accomplished by providing a link to a web-based survey hosted by
SurveyMonkey.com®. Survey links were distributed in two ways: through direct e-mail
solicitation of potential respondents and through providing a link in e-mail newsletters of MBA
networking organizations with a membership base outside of OECD countries. Alreck and Settle
(2004) suggested that such web-based instruments are appropriate when the potential
respondents participate in educational or scientific occupations and the potential population uses
web-based technologies at work. In the case of MBA program administrators, the occupation
typically has internet access. For the other groups of respondents, MBA graduates and MBA
MBA Effectiveness in non-OECD Countries 88
recruiters, the occupation demands ready and frequent access to and use of the internet, even in
non-OECD countries. As noted by the OECD (2007), internet use in developing countries is
disproportionately higher than that for the average of United States-based residential urban
population working in companies with internet access; internet cafes are also prevalent in some
non-OECD countries.
Quantitative Data Analysis
Upon completion of data collection, the personal information and consent indications
were separated from the data file and stored in a separate file. The responses to questions were
transferred from the SurveyMonkey.com® system to a Microsoft Excel® file format, which was
imported into SPSS®. The responses, without the personal information and consent indications,
were coded by the survey software to contain ordinal numbers of one to five, which are identical
to the number shown in the Likert-type scale in the survey. The coded data were then prepared in
an item-level Microsoft Excel® file format file for importing into the SPSS®.
The quantitative methodology used in this study consisted of a validated survey
instrument using Likert scaled questions. The design of the analysis included a three-part
technique. First, the mean values from the Brooks (2006) population sample for each of the 12
MBA skill sets were compared pair-wise by skill, Brooks versus the non-OECD population in
this study, using a t-test of independent means to ascertain whether there were significant
differences between the Brooks sample and that of this study in the importance and effectiveness
perceptions, respectively. Second, an analysis of variance was performed for the responses from
the non-OECD respondents to determine if there was a significant difference among non-OECD
MBA program administrators, recruiters, and MBA graduates in terms of perceptions of
importance as well as MBA program effectiveness with respect to each of the 12 MBA skill sets.
MBA Effectiveness in non-OECD Countries 89
Last, the mean values of the importance and effectiveness ratings were plotted on a Cartesian
grid, illustrating clustering of perceptions relative to attribute sets (the importance-effectiveness
grid). Brooks used both the t-test and analysis of variance methods in her analysis. The
importance-effectiveness analysis was also used by Brooks and was validated by Alberty and
Mihalik (1989) as an appropriate technique with respect to the measurement of educational
program efficacy in the context of skill sets developed by a curriculum approach.
Validity and Reliability
Internal validity relates to whether an instrument measures what it purports to measure
(Robson, 2002). Robson summarized the eight areas of concern for internal validity as the
following: (a) history, (b) maturation, (c) testing, (d) instrumentation, (e) statistical regression,
(f) differential selection, (g) experimental mortality, and (h) selection maturation interaction.
History could present a concern because of the rapid changes in the global business environment.
Maturation can also present concerns because the perceptions of MBA graduates can change
with experience after graduation from the program. Testing and instruments were not concerns in
the proposed study because multiple successive tests or surveys was not be used. Regression
similarly could be problematic if respondents were chosen for their unusual characteristics.
Differential selection, relating to the differential experiences of respondents prior to the survey,
may have presented some validity concerns because of the different locations of respondents.
Experimental mortality, selection maturation, and interaction did not raise concerns because the
interaction with respondents while completing the survey was limited. Overall, the internal
validity issues were not seen as significant to defeat the stated objectives of the present research
study.
External validity, or the ability to generalize a study’s findings to additional individuals
MBA Effectiveness in non-OECD Countries 90
and groups in different time frames (Cooper & Schindler, 2008), as noted below, did not pose
concerns. Robson (2002) stated four major areas of concern with respect to external validity: (a)
selection, (b) specific setting, (c) history, and (d) construct effects. Selection and specific setting
did not pose a concern because the group studied was based in a number of countries and
settings. History could pose a concern to external validity because the impact and understanding
of globalization and current events surrounding business conditions are at various stages of
maturity in various countries. Finally, construct validity was not a concern because the group
studied was broadly based in a range of non-OECD countries.
Summary
In chapter 3, the design for the study, instrumentation, respondents, sampling methods
and sample size, research questions, hypotheses, and data analysis procedures and protocols were
presented. A survey design using convenience samples of MBA program directors, corporate
recruiters of MBA graduates, and MBA graduates directors located in non-OECD countries was
described. A sample size of 30 MBA program directors was an estimate based on the number of
MBA programs in non-OECD countries listed as recipients to the GMAT score reports. Sample
sizes of 100, ideally, or as few as 20 each for corporate recruiters of MBAs and MBA graduates
were based on a typical minimum for studies involving large, inestimable numbers of members
and the types of inferential statistics used. The research questions were focused on the
perceptions of desirable MBA skill sets and the perceived efficacy of MBA programs in
developing those skills in developing countries. The survey design and instrumentation allowed
comparisons of perceptions using importance performance analysis as well as parametric
statistics. In chapter 4 the analysis of the data collected is presented along with conclusions
relative to the research questions and hypotheses.
MBA Effectiveness in non-OECD Countries 91
CHAPTER 4: RESULTS
The purpose of this quantitative comparative methods research was to compare the
findings of Brooks (2006) about the perceived importance of MBA skill sets and the
effectiveness of MBA programs in the United States to the same in developing countries. The
population in this study consisted of MBA program directors, corporate recruiters of MBA
graduates, and MBA graduates situated in non-OECD countries. A sample of this non-OECD
population was compared with a United States-based population of MBA program directors and
corporate recruiters sampled by Brooks (2006). The comparisons between these groups allowed
an examination of the differences in importance of 12 MBA skill sets between samples situated
in a developed country, the United States, and in developing economies, represented by presence
in non-OECD countries.
This chapter presents the study’s quantitative results in narrative form, through tabular
presentations, and with graphical representations of variables. This analysis is presented in four
parts. First, a demographic profile of the study’s participants is presented. Second, t-tests of
means were used to test the four hypotheses related to a comparison of MBA skill set importance
and MBA program effectiveness of United States-based and non-OECD situated populations of
MBA program directors and corporate recruiters of MBA graduates. Third, an analysis of
variance was used to test two hypotheses relative to intra-group rating differences for MBA
program directors, recruiters, and MBA graduates. Last, two-dimensional graphical presentations
of results of the 12 MBA skill sets were developed to demonstrate distinctions between United
States-based respondents and non-OECD situated respondents.
Findings
The study used a web-based survey instrument to solicit perceptions of the importance of
MBA Effectiveness in non-OECD Countries 92
12 MBA skill sets and the effectiveness of MBA programs in developing the skill sets. The
survey was administered to a convenience sample of populations of MBA program directors,
recruiters of MBA graduates, and MBA graduates situated in non-OECD countries. The response
rates are shown in Table 7 below.
Table 7.
Respondents to non-OECD MBA Skills Survey
Sample Group Surveys
sent Surveys
returned Response
rate
MBA Program Administrators
200
30
15%
Recruiters of MBA Graduates
89
28
31%
MBA Graduates
234
38
16%
TOTAL
523
96
18%
Of the 38 MBA graduates responding, 14 indicated presently recruiting MBA graduates. The 14
MBAs indicating recruiting activity were aggregated with the 27 corporate respondents to
comprise a group equivalent to recruiters for purposes of comparison to Brooks’ responses. The
number of respondents was sufficient, as noted by Norušis (2010), in all cases to allow the
statistical tests envisioned for each set of hypotheses.
MBA program administrators were asked to provide information on the type institution.
All respondents provided this information. The responses are summarized in Table 8 below.
Table 8.
Institution Type of MBA Program Administrators
Count
%
Private, for-profit 4 13.3%
Private, non-profit
10
33.3%
Public
11
36.7%
Not Answered
5
16.7%
TOTAL
30
100%
MBA Effectiveness in non-OECD Countries 93
Corporate recruiters respondents were asked to identify the industry served and size of
organization. Table 9 shows the industry type for recruiter / corporate respondents.
Table 9.
Distribution of Corporate Responses by Industry
Count
%
Financial / Consulting / Services
16
57.2%
Information Technology
2
7.1%
Manufacturing / Engineering
6
21.4%
Retail / Consumer Products
3
10.7%
Not answered
1
3.6%
TOTAL
28
100%
Over half of the recruiter / corporate type respondents indicated working in the services sector
including finance, consulting, and services. This may be an confirmation of a tendency, as noted
by Khurana (2007) that MBA graduates tend towards finance and consulting over manufacturing
and retail sectors.
MBA graduates were asked to respond with the type of MBA program completed. Table
10 displays the response results of MBA graduates for type of program completed.
Table 10.
Distribution of MBA Graduate Respondents by MBA Program Type
Count
%
Executive MBA
4
10.5%
Full-time classroom
28
73.7%
Part-time, non-executive
3
7.9%
Not Answered
3
7.9%
TOTAL
38
100%
Respondents were provided with two options to demonstrate involvement with an OECD
country sufficient to be considered as being situated in a non-OECD country. The first possibility
was that the survey respondent was physically located in a non-OECD country. The second
MBA Effectiveness in non-OECD Countries 94
possibility allowed for the respondent, even if not physically located in a non-OECD country, to
indicate work experience in a non-OECD country. A respondent was considered to be situated in
a non-OECD so long as the respondent indicated a physical location in a non-OECD country or
indicated experience working in such a country. The justification for this approach was that work
experience in such a country would likely give the respondent a perspective on the skill sets
needed for management of a business enterprise in the non-OECD location.
Of the 96 respondents, 84 were physically situated in a non-OECD country while 12,
although not physically situated in a non-OECD country had experience in such a country. Of the
84 respondents situated in a non-OECD country, the locations are shown in Table 11 below.
MBA Effectiveness in non-OECD Countries 95
Table 11.
Physical Location of Non-OECD Respondents
Role
Total % of
Total
Academic
institution
Recruiter
of MBA
graduates
MBA
graduate
Albania
-
-
1
1
1.2%
Andorra
1
-
-
1
1.2%
Argentina
-
-
2
2
2.4%
Barbados
2
-
1
3
3.6%
Belize
-
1
-
1
1.2%
Brazil
-
4
3
7
8.3%
Cambodia
-
1
-
1
1.2%
Chile
-
-
2
2
2.4%
China
2
3
4
9
10.7%
Dominican Republic
-
1
-
1
1.2%
Georgia
1