1. 1
Factors Affecting Students Intention to Apply for an MBA Program in Silicon Valley
The popularity of business schools is at an all-time high with more than 200,000 MBA
degrees offered each year globally, and almost 98% of the MBA graduates land a job (Lorenzi,
2012). Such employment opportunities has exponentially increased the number of MBA
applicants. Many factors have shown to affect MBA students’ satisfactions with the MBA
program, such as career and developmental advice regarding the type of major, career path, and
making decisions for graduate studies. However, the aspirations and expectations to pursue a
graduate degree may be dependent on a number of other variables.
Our research is designed to understand what factors students are considering when they
apply for an MBA degree in Silicon Valley. We focus on the following factors and discuss how
they influence students’ intention to apply for an MBA program in Silicon Valley: networking
opportunities, entrepreneurial opportunities, employers’ willingness to pay tuition, perceived
affordability of tuition, and perceived values of an MBA degree. Findings of this project will help
universities and organizations in Silicon Valley design policies around the factors valued most by
the students.
CONCEPTUAL FRAMEWORK
Networking & Entrepreneurial Opportunities: The starting point of any business or
advancement in one's career is networking. The network environment is the result of specifically
chosen collaborations between entrepreneurs, firms and the institutions driving the innovatio n
leading to commercialization. Silicon Valley is known for its networking and startup culture. It
provides the perfect blend of innovation and wealth generation that is required by startups.
Furthermore, a large pool of venture capitalists is an added advantage for the most promising
startups (Kenney, 2000). We therefore hypothesize that:
H1: Networking opportunities will positively influence students’ intention to apply for an MBA
program in the Silicon Valley.
H2: Entrepreneurial opportunities will positively influence students’ intention to apply for an
MBA program in the Silicon Valley.

2. 2
Organizational Factors: The intrinsically motivated companies, optimistic working environment,
the special combination of ideas and resources and the risk-taking culture are the factors that make
Silicon Valley unique. To sustain the culture, companies in the Silicon Valley have higher
expectations for their employees. They believe that employees with an MBA degree are important
assets to their company (Gupta and Bennett, 2014) and are willing to financially support employees
for an MBA education. Brewer (2012) found that the ability of the employer to pay for the MBA
tuition was the major driving factor for employees to consider applying for an MBA program. This
has led to the following hypothesis.
H3: Perceived willingness of the companies to pay the MBA tuition for their employees will
positively influence the intention to apply for an MBA in the Silicon Valley
MBA program factors: Rupert, Smith, Velliquette, Garretson (2004) studied the in-class
environment factors and outside class factors included financial assistance, integration with the
outside business community, program clarity and career services. They found that students gave
major preference to online ranking and reputation of the university, the placement record and
tuition cost. In this project, we want to examine to what extend that tuition cost will have similar
effects in Silicon Valley. Hence,
H4: Tuition cost will negatively affect a students' intention to apply for an MBA program in Silicon
Valley.
Perceived Value of an MBA: Although the value of an MBA degree is questioned by the industry
as well as academia (e.g., Pfeffer& Fong, 2002), recent research has revealed that an MBA degree
can positively impact an MBA graduate's salary, promotional ability, and managerial
responsibility. This line of research has noted that the actual value of an MBA is only realized
when the degree is earned from the best business schools in the country, and the value tends to
decrease if the university and program ranking is relatively low and the admission rate is high
(Arcidiacono, Cooley and Hussey, 2008). The value of an MBA degree is also evidenced from
interviews with MBA degree holders as they rated their MBA experience very positively. Hence,
we expect that:
H5: Perceived value of an MBA positively affect students’ intention to apply for an MBA
program in the Silicon Valley.

3. 3
METHODS
An online survey was conducted among 70 participants in which 50% of them were 21-
30 years old and 47% were females. Our study strictly focused on those who are currently not in
an MBA program. The questionnaire was designed using Qualtrics and the survey link was
distributed among participants through email, LinkedIn, Facebook, and intercepts outside of the
MLK library on campus. The six major variables, including networking opportunities,
entrepreneurial opportunities, willingness to pay tuition by employer, perceived affordability of
the tuition, perceived values of MBA degree were measured by 5-point Likert scales ranging from
“1” (strongly disagree) to “5” (strongly agree) while the intention to apply for an MBA program
was measured by a 5-point semantic differential scale. See Table 1 for the statements and
Cronbach’s alphas. Participants’ demographic information was also measured at the end of the
survey.
RESULTS
A multiple linear regression analysis was employed to examine the predictive ability of the
five factors on intention to apply for an MBA program. The regression model indicates that 27.4%
(Adjusted R2 = 0.274) of the variance in student’s intention to apply for an MBA in Silicon Valley
was explained by the following factors: networking opportunities in the Silicon Valley,
entrepreneurial opportunities, willingness to pay tuition by employer, perceived values of an MBA
degree, and perceived affordability of the tuition. Specifically, networking opportunities in the
Silicon Valley was found to significantly predict students’ intention to apply for an MBA in Silicon
Valley, β= 0.231, t(5,64) = 2.080, p<0.05. Hence, H1 was supported. Also, perceived values of an
MBA was found to significantly predict students’ intention to apply for an MBA in Silicon Valley,
β= 0.494, t(5,64) = 3.866, p < 0.001. Hence, H5 was supported also. The other hypotheses were
not supported. See Table 2 for statistics and hypothesis testing results.
CONCLUSIONS AND DISCUSSION
This project is designed to understand the factors that students consider before applying
for an MBA program in the Silicon Valley. Our preliminary research found that the both
networking opportunities and perceived value of an MBA degree in the Silicon Valley significantly

4. 4
influenced students’ intention to apply for an MBA program. However, entrepreneurial
opportunities and the two factors related to tuition were found not to influence the intention.
Silicon Valley is known for its flamboyant networking opportunities and this is a major
factor that attracts many talents to this part of the country. Our results showed that the student
respondents strongly recognize the networking opportunities in Silicon Valley, which fosters
strong connections with a great diversity of people and possible greater career opportunities.
Hence, networking opportunities become one of the important factors that affect their intentions
to apply for an MBA program. In addition, consistent with Brewer (2012), perceived value of an
MAB degree significantly affects intentions to apply. The values associated with an MBA degree
could be that it makes people more marketable and benefits them in the long run. Hence, the
importance of an MBA degree in their career enhancement influences their intention to apply for
an MBA program.
Different from what we hypothesized, entrepreneurial opportunities was not a significant
predictor. This is unexpected given that Silicon Valley is the hub of technological advancement.
A closer look at the profile of the participants indicated that most of them are 21-30 years who
either have a bachelor degree or are currently pursuing their bachelors. Since they have limited
professional experience, they may not quite understand entrepreneurial opportunities or deem it as
important if they apply for an MBA program. Similarly, the profile of the respondents in the current
survey may also explain why the factors with tuition were not strong predicators, either. First, with
respect to wiliness to pay tuition by employers, most of our participants have little work experience
or have recently been recruited. They may not be aware of employers’ policies on reimbursement
of an MBA tuition. Maybe a few years into their career when they feel the need to recharge
themselves, they may actively seek out such policy, which will influence their intention to apply
for an MBA program. Second, different from Heslop and Nadeau (2012), our study showed that
affordability of tuition was not a critical determinant in decisions to study an MBA. As most of
our respondents were undergraduate students, they were so focused with their current college
education, and might have not evaluated the cost that it would take to complete an MBA degree.
Hence, it seems that in spite of an economic meltdown in the country and the criticisms
tagged to an MBA degree, potential students still think that an MBA degree is valuable to them
and a way to advance their career. Also Silicon Valley stands up to its name of being the

5. 5
networking capital and most of the respondents agree that networking opportunities is an important
factor. University institution and enterprises need to understand the driving forces behind a
student’s intention to apply for an MBA degree, and this research provides the required roadmap.
Practical Implications: Given that both networking opportunities and perceived values of an
MBA degree positively affect intention to apply, business schools in Silicon Valley can leverage
this knowledge to design marketing programs to attract more applicants. They can have their
alumni to share their professional experiences after having an MBA degree with a focus on
networking opportunities and how it helps their career. The business school should also focus on
the value of having an MBA degree and what the school does to enhance such values, e.g., cutting-
edge curriculum, qualifications of the faculty members, and interaction between faculty and
students.
Limitations& Future Research:This project was conducted for a 7-week business class. As such,
it should be considered as a preliminary study. We would like to discuss three limitations. First,
the small sample size as well as the profile of the respondents (as discussed above) may affect our
research findings. Future research should consider having a bigger sample size and include
respondents who are seriously thinking about applying for an MBA program in the next 1-2 years.
Data from this kind of respondents may provide better insights into what factors affect their
intention to apply. Second, the reliability test showed that some constructs have a lower
Cronbach’s alpha. Hence, an improved questionnaire is needed in order to increase the reliability
of the measurement. Third and lastly, the current model only explained about 30% of the variance
in the intention to apply for an MBA program. This suggests that other factors such as employment
opportunities should be included in the model to booster the explanatory power of the model.
Given the strategic role of Silicon Valley in business development, entrepreneurship and
innovation, we call for more research on various factors that affect intention to apply for an MBA
program.

6. 6
SELECTEDREFERENCES
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Brewer, K.,and Brewer,P. (2012). Influencing Variables And Perceptions Regarding
MBA Degree Programs. Academy of Educational Leadership Journal, 16 (4). 27-38.
B, C. (2008). Facing a murky job market. Business Week Online,,28.
Dailey, L., Anderson, M., Ingenito, C. et al. (2006). Understanding MBA consumer needs and
the development of marketing strategy. Journal of Marketing for Higher Education, 16(1),143–
158.
Goldgehn, L., & Kane, K. (1997). Repositioning the MBA: Issues and Implications. Journal Of
Marketing For Higher Education, 8(1), 15-24. Graduate Management Admissions
Council. (2011). Graduate Management News.
Gupta, A., & E. Bennett, S. (2014). An empirical analysis of the effect of MBA programs on
organizational success. Intl JnlOf Educational Mgt,28(4),451-460.
Johnson, J., Thomas, V.,& Peck,J. (2010). Do specialized MBA programs cultivate alumni
relationships and donations?. Journal Of Marketing For Higher Education, 20(1),119-134.
J, P. (2005). MBA brings benefits to employer and employee. Finance Week,27.
Kenney, M. (2000). Understanding Silicon Valley. Stanford,Calif.: Stanford University Press.
Lorenzi, P. (2012). Business Schools: Capitalism’s Last Stand. Soc,49(3),230-239.
Pfeffer,J.,& Fong, C. (2002). The End of Business Schools? Less Success Than Meets the Eye.
Academy Of Management Learning & Education,1(1),78-95.
Rapert,M., Smith, S., Velliquette, A.,& Garretson, J. (2004). The Meaning of Quality:
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Table 1: Variables and their sample statements
Variables Sample statements
Networking
Opportunities
(Cronbach's α = .642)
1. Silicon Valley offers the best networking opportunities in the country.
2. Networking with occupationally diverse people is best found in Silicon
Valley.
Entrepreneurial
Opportunities
(Cronbach's α = .686)
1. MBA from a university in silicon valley helps me fulfill my
entrepreneurial desires.
2. A large number of startups are found in the Silicon Valley.
3. Higher concentrations of the venture capitalist attract me to the valley.
Willingness to pay
tuition by employer
(Cronbach's α = .605)
1. If my employer encourages me to pursue an MBA, I would expect
financial assistance from my organization.
2. My loyalty towards the organization I work in, increases if my
employer pays for my tuition.
3. My employer feels my skills are better utilized in a managerial position.
Affordability of Tuition
(Cronbach's α = .646)
1. The long term benefit of an MBA outweigh the cost.
2. I cannot afford anything more than my current tuition fee.
3. I prefer a state university over an ivy league, because of its low tuition.
Perceived Value of an
MBA
(Cronbach's α = .850)
1. I believe an MBA degree will make me more marketable when I am
looking for a job.
2. I believe my MBA education will benefit me in the long term run.

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Please indicate the extent to which you are interested in applying for an MBA program.
1 2 3 4 5
Unlikely: Likely (1) ❍ ❍ ❍ ❍ ❍
Impossible: Possible (2) ❍ ❍ ❍ ❍ ❍
Low Likelihood: High Likelihood (3) ❍ ❍ ❍ ❍ ❍
I will definitely not consider: I will
definitely consider (4)
❍ ❍ ❍ ❍ ❍
Table 2:Hypothesis Testing Results
Hypothesis Path Beta
Values
Level of
Significance
Support
H1 Networking Opportunities Intention to apply for MBA 0.231* 0.042 S
H2 Entrepreneurial Opportunities Intention to apply for
MBA
-0.068 0.595 NS
H3 Willingness to Pay Tuition by Employer Intention to
apply for MBA
0.033 0.788 NS
H4 Perceived Affordability of the Tuition Intention to
apply for MBA
-0.041 0.729 NS
H5 Perceived Values of MBA Degree Intention to apply
for MBA
0.494** 0.0001 S
*p<0.05 **p<0.001
Notes: S = supported NS = not supported