Competition in management education: A coevolutionary analysis.
APROS Colloquium 2013 15-17 February 2013, Hitotsubashi University, Tokyo, Japan Stream I Recovering Management Education and DevelopmentCompetition in Management Education: A Coevolutionary Analysis Der Chao Chen Assistant Professor Department of Business Administration National Central University, Taiwan February 15, 2013
Outline• Introduction• The Development of Management Education• The Coevolutionary Approach• The Case Study• Research Results• Discussions• Conclusions 2
Introduction• For future applicants and employers, different business school rankings have been used as indicators to reflect the business schools’ reputation and portfolio in the worldwide management education market. 3
Introduction• However, how about the competition among different business schools remain a less explored inquiry.• How can we explain the catching up from business schools in emerging markets, especially people may assume management practices in developed and newly industrial countries are more advanced than those in emerging markets?• This study applied the ideas of coevolutionary perspective to examine the competition in management education using the case of development of management education in China and Taiwan.
IntroductionOr just consider the following phenomenon ,• More business schools in China listed on FT rankings, why business schools in Taiwan cannot compete with those in China?• Can market size and growth potential explain everything we observed or there are something more? 5
The Development of Management Education• It’s a young discipline with around hundred years old, comparing with those in the fields of natural science.• Except the long standing debate about management is a science or art, management education, especially the MBA program, has considered as a entrance ticket for being a professional managers.
The Development of Management Education• Management education become headlines in the past decades, and the whole industry has become dominated by U.S. business schools since 1950s. 7
The Development of Management Education• Management education in US become an role model for the development of most business schools around the world, whether there are university based business schools or independent private ones.• The influence of Americanization can be observed on faculty recruitment and promotion, program design and implementation in non-US business schools. 8
The Development of Management Education• When the discussions for relevance and rigorous and the urge of redesigning management education programs raised in most US and US- style business schools in the middle of 2000s, most of non-US business schools may remain unchange. 9
The Development of Management Education• Professional organizations, including academic and accreditation ones, play proactive role to promote the development of management professions, and start to self-reflection about the argument between relevance and rigorous in management.• However, similar self-reflection studies cannot or hard to be found in non-English context. 10
The Coevolutionary Approach• Lewin & Volberda (1999) defined the idea of coevolution as “the joint outcome of managerial intentionality, environment and institutional effects ”• This study adopted this idea to collect longitudinal data related with those constituents for analyzing competition of management education in China and Taiwan, in terms of their development trajectory, respectively. 11
The Coevolutionary Approach• Environment effects , such as Changing of market system and industry environment Internationalization progress of higher educationinstitutions, etc.• Institutional effects, such as Regulations related with the development ofmanagement education Support and incentives in management education andresearch from government agencies. 12
The Coevolutionary ApproachThis work collected longitudinal data based on thecomponent of our definition.• Managerial intentionality, such as establishments of the University-based business schools orindependent and private business schools, the time of receiving accreditations from AACSB,EFMD, AMBA, etc. Management related professional associations , organizations for case teaching/learning with thebusiness schools, etc. 13
The Case Study• Before 1978-ChinaEnvironment: Planned economy with the influenceof Soviet Union and state-owned enterprises (SOEs)led economy.Institutional: No subject called “businessadministration” but mainly focus on managementscience. Managers mainly with backgrounds in scienceand engineering. 14
The Case Study• Before 1978- TaiwanEnvironment: Industrializing with foreign subsidiaries and SOEs plays major roles in the domestic economy.Institutional: Nationalist capitalism.Managerial intentionality: Dept. of Business Administration, National Chengchi University(NCCU),Taipei, established in 1962 under a cooperative program with University ofMichigan in Ann Arbor, Michigan, USA, was the first Department of BusinessAdministration in Taiwan. The first PhD in Business Administration established in NCCU in 1976. Chinese Management Association was established in 1973. 15
The Case Study• 1978-1980- ChinaEnvironment: Transition toward Socialism market economy.Institutional: Government led the establishment of management education and training.Managerial intentionality:Local universities start to train young managers in economicmanagement at the postgraduate level.China-Europe Management Institute (CEMI) established in Beijing in1982.MBA Education Center in Dalian University of Science andTechnology, a contract between Chinese government and theDepartment of Commerce, USA in April 1984. 16
The Case Study• 1980-1990- ChinaEnvironment: Industrializing economy and increasing inward FDI.Institutional: The Economic and Trade Commission of Chinaorganized a task force was set up for building China’s MBA trialprogram.Managerial intentionality: In 1990, The Degree Committee of State Council of Chinaapproved nine universities/institutions become the first batchorganizations to set up MBA programs and confer the MBA degree. 17
The Case Study• 1980-1990- TaiwanEnvironment: Deregulation and more open market, changing relationship with China.Institutional: Market capitalism, educational reforms,Managerial intentionality: Kung-Hwa Management Foundation was found in 1983. The number of business schools/universities starts togrow up, especially in the late of 1990s.
The Case Study• 1990-2012- ChinaEnvironment: The entry of WTO, more inward FDI and increasing outward FDIInstitutional: The establishment of China National MBA Education SupervisoryCommittee in 1994. Chinese GMAT examination (GRK) was used for the nation wideMBA entrance examination since 1996. The Government funding agencyManagerial intentionality:The establishment of China Europe International Business School (CEIBS) in1994.The founding of Cheung Kung Graduate School of Business in Beijing, 2002. The establishment of International Association for ChineseManagement Research (IACMR) in 2002. The founding of China Management Case Sharing Center in 2007. 19
The Case Study• 1990-2012- TaiwanEnvironment: Changing relationship with China, the entry of WTO, migrate valuechains of ICT products from Taiwan to China.Institutional: The Ministry of Education (MOE) starts to sponsor the establishment of professional business school since 2005 and encourageEnglish taught courses and program. MoreManagerial intentionality: The founding of Taiwan Academy of Management in 2006 with thesupport of National Science Council. In 2006, NCCU established a project office (PERDO) that sale casematerial from Harvard and Ivy and develop domestic case material Commerce Development Research Institute was found in 2007 Some business schools start to run English taught MBA programs andestablish their own case centers. 20
Discussions Figure The Number of Accredited Business Schools in China and TaiwanNote: Accumulating the number of business schools accredited by AACSB, AMB, andEFMD respectively in every year. 21
Discussions• Until 2005, both business schools in China and Taiwan just to institutionalize their case teaching, along with the global expansion of PCMPCL (Program on Case Method and Participant-Centered Learning) of Harvard Business School.• Before that, there is no official and continuous support for developing case teaching material and promoting case learning in both sides, except that individual department, professors may focus on that. 22
Discussions• In China, IACMR, initiated by leading overseas Chinese and foreign scholars worked in US/Europe, help to institutionalize the management research in China and encourage the development of Chinese management theory.• Even they are older than IACMR and has done similar things, professional organizations in Taiwan played more like consulting teams rather than academic/subject promoters and facilitators. 23
Discussions• MBA programs in China mainly followed the requirement and supervision of China National MBA Education Supervisory Committee.• Before the announcement of the sponsorship for establishing professional business school from the Ministry of Education in Taiwan in 2005, most MBA programs in Taiwan are different than business schools in elsewhere. e.g. fresh undergraduate without working experiencecan be granted the MBA degree 24
Discussions• Institutional effects provide seed funding and essential supports for business schools to maintain and develop.• Managerial intentionality, a groups of inspiring people will to do something different, makes those business schools different.• In a non-English speaking context, how and to what extent does the language of instruction matter in management education, especially for rising the positions in rankings/competitiveness(?), worth a further examination. 25
Discussions• When Western business schools start to self- reflection for redesigning their program design and raising the debate about relevance and rigorous in research, similar introspective works are hard to find in Chinese context. 26
Conclusions1.A coevolutionary perspective provides a multi-level lens to observe competition amongorganizations.2. Institutional effects and managerialintentionality play key roles for business schools tocompete with their rival.
ConclusionsImplications for new born Business schools:1. A well dedicated leadership and members at the founding stage, e.g. CEIBS, etc.2. Partners with your stakeholders as early as possible,such as those from industries, government, localcommunities, e.g. IMD, ESMT, etc.3. Define your target markets and chose the language ofinstruction appropriately.
Conclusions• Implications for new business schools:4. Except offering degree programs, initiating andmaintain core and supportive infrastructures as earlyas possible, including case center, executive educationprogram.5. Making sources of funding raising as diverse aspossible for maintaining the autonomy and sutainingfuture growth.6. Branding your school as early as possible 29
Discussions• Research limitations1. Phenomenon based observation can becomplement with first hand interview withexperienced faculty and staffs for the furtherresearch.2. Different theoretical approaches can use toexamine the competition of business schools wediscussed or in different geographic areas. 30
Conclusions• Future research directions1. In depth case studies at the school level to explore theirdevelopment trajectories and understand their competitivebehaviors toward competition in detail.2. Will and how business schools in China or Taiwan or othersin non-Western areas follow the recent trends about redesigningMBA programs like their counterparts in US and Europe?3. Self-reflective works concern about managementeducation/research in different countries would be aninteresting research inquires and complement withcurrent research derived from those in Westerncountries. 31
Thanks for Your Time and Comments Der Chao Chen Email: email@example.com 32