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Springerbriefs in Business More Information About This Series at Gabriel Hawawini SpringerBriefs in Business More information about this series at http://www.springer.com/series/8860 Gabriel Hawawini The Internationalization of Higher Education and Business Schools A Critical Review 123 Gabriel Hawawini INSEAD Fontainebleau France and INSEAD Singapore Singapore ISSN 2191-5482 ISSN 2191-5490 (electronic) SpringerBriefs in Business ISBN 978-981-10-1755-1 ISBN 978-981-10-1757-5 (eBook) DOI 10.1007/978-981-10-1757-5 Library of Congress Control Number: 2016943856 © The Author(s) 2016 This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. Printed on acid-free paper This Springer imprint is published by Springer Nature The registered company is Springer Science+Business Media Singapore Pte Ltd. Acknowledgment The author wishes to thank Arnoud De Meyer (Singapore Management University), Soumitra Dutta (Cornell University), Laurent Jacque (Tufts University), Mitchell Koza (Rutgers University), Roger Mesznik (Columbia University), Kris Olds (Wisconsin University), Jasjit Singh (INSEAD), and anonymous referees for their comments. Some of the ideas developed in this book were first presented at a conference “The Future of the Corporation” organized by the SEI Center for Advanced Studies in Management at the Wharton School of the University of Pennsylvania during November 16–17, 2006. v Contents 1 Introduction and Overview .............................. 1 2 What Is Internationalization?............................. 3 2.1 Defining Internationalization . 4 2.2 The Internationalization of Universities. 5 2.3 The Internationalization of Business Schools . 10 2.4 A Search for More Comprehensive Measures of Internationalization. 15 References . 15 3 Internationalization: Motives ............................. 17 3.1 Academic Motives for Internationalization . 18 3.1.1 Internationalizing to Fulfill the Institution’s Educational Mission . 18 3.1.2 Internationalizing to Remain Academically Relevant in an Interconnected World. 21 3.1.3 Internationalizing to Attract the Best Students and Faculty Worldwide . 22 3.2 Economic Motives of Internationalization . 22 3.2.1 Internationalizing to Grow Revenues . 22 3.2.2 Internationalizing to Reduce Operating Risk via Geographical Diversification . 23 3.2.3 Internationalizing to Fund Activities on the Home Campus . 23 3.3 Evidence from US Higher Education Institutions . 24 3.4 Internationalizing to Learn from the World . 25 References . 26 4 Internationalization: Obstacles ............................ 27 4.1 Academic Obstacles to Internationalization . 27 4.1.1 Faculty Ambivalence . 27 4.1.2 Potential Dilution of Reputation . 29 vii viii Contents 4.1.3 Institutional Obstacles . 29 4.1.4 Regulatory Obstacles . 30 4.2 Economic Obstacles to Internationalization . 31 4.2.1 Time-Related Costs . 31 4.2.2 Risks . 31 4.2.3 Lower Financial Support from International Alumni. 31 4.3 The Internationalization Paradox . 32 References . 33 5 International Reach .................................... 35 5.1 The Architecture of Internationalization . 36 5.2 Importers . 39 5.3 Exporters . 39 5.4 Virtual Exporters . 40 5.5 Academic Joint-Ventures . 40 5.6 Academic Partnerships and Alliances . 41 5.7 Campuses Abroad . 42 References . 48 6 International Richness .................................. 49 6.1 Cultural Dominance . 51 6.2 Assimilation Traps . 52 6.2.1 The Institutional Assimilation Trap . 52 6.2.2 The Individual Assimilation Trap . 52 References . 53 7 The Internationalization Matrix: Alternative Types of Higher Education Institutions........................... 55 7.1 National Institutions . 56 7.2 International Institutions . 61 7.3 Cosmopolitan Institutions . 62 7.4 Institutions with Campuses Abroad . 63 7.5 Multicampus Institutions. 64 7.6 Multinational Institutions . 66 7.7 Transnational Institutions . 66 References . 67 8 The Metanational Higher Education Institution................ 69 8.1 Metanational Campus Configuration. 70 8.2 Metanational Governance and Organizational Structure. 72 8.3 Knowledge Creation in a Multipolar World. 73 8.4 The End of the Comprehensive Research University as We Know It? . 74 8.5 Implementation Challenges . 75 8.6 Concluding Recommendation . 76 References . 76 Contents ix 9 Summary of Major Points and Recommendations .............. 77 9.1 Defining Internationalization . 77 9.2 Measuring Internationalization. 77 9.3 The Top-Down Internationalization Principle. 78 9.4 The De Novo Internationalization Principle . 78 9.5 Internationalization as a Learning Process . 78 9.6 The Internationalization Paradox . 78 9.7 The Architecture of Internationalization . 79 9.8 International Reach . 79 9.9 International Richness . 80 9.10 The Individual Assimilation Trap. 80 9.11 The Institutional Assimilation Trap . 80 9.12 The Internationalization Matrix . 80 9.13 The Metanational Higher Education Institution . 81 9.14 Policy Recommendations . 81 Index ................................................. 83 About the Author Gabriel Hawawini is Professor of Finance at INSEAD (gabriel.hawawini@insead. edu). He held the Henry Grunfeld Chair in Investment Banking from 1996 to 2013 and served as Dean from 2000 to 2006, spearheading the school’s global expansion. He is also a Visiting Professor at the Wharton School of the University of Pennsylvania where he received the Helen Kardon Moss Anvil Award for Excellence in Teaching (1988). Prior to joining INSEAD in 1982, he taught at New York University, Columbia University, and the City University of New York where he received the Presidential Award for Distinguished Faculty Scholarship (1982). He has authored 13 books, two online courses, and over 70 research papers. His most recent book, Finance for Executives: Managing for Value Creation, published in 2015, has been translated into several languages. Gabriel is the recipient of the Fulbright Award for Global Business Education (2004), the French Legion of Honor (2005), and the Chief Executive Leadership Award (2006) presented by the Council for Advancement and Support of Education. He chaired the Equis accreditation board of the European Foundation for Management Education (2004–2011) and served on the board of directors of Vivendi, S&B Minerals, and Rémy Cointreau. He is currently on the advisory board of AlphaOne Capital LLP, the board of trustees of the University of the People and the advisory board of several higher education institutions around the world, including MIT Sloan and Carnegie Mellon University in Qatar. Gabriel received his Bachelor’s and Master’s degrees in Chemical Engineering from the University of Toulouse (1971 and 1972) and his Doctorate in Economics and Finance from New York University (1977). He was awarded Honorary Doctorates from the University of Liège in Belgium (2005), the Art Center College of Design in Pasadena, California (2005), and the American University in Cairo (2010). xi List of Exhibits Exhibit 1a University ranking: ‘International Outlook Rank’ versus ‘World University Rank’..................... 7 Exhibit 1b University ranking: ‘World University Rank’ versus ‘International Outlook Rank’ ....................... 8 Exhibit 2a Internationalization of business schools. 12 Exhibit 2b Business school ranking: Comprehensive rank and international criteria . 14 Exhibit 3 Inclusion of internationalization in the mission statement, strategic plan, and committees of US higher education institutions . 20 Exhibit 4 The three most compelling reasons US institutions focus on internationalization . 24 Exhibit 5 International reach and corresponding internationalization initiatives . 38 Exhibit 6a Home countries with the highest numbers of foreign campuses . 44 Exhibit 6b Host countries with the highest numbers of foreign campuses . 45 Exhibit 6c Business schools with foreign campuses . 46 Exhibit 7 Drawbacks and advantages of a second campus. 48 Exhibit 8 Internationalization reach versus international richness . 52 Exhibit 9 The Internationalization matrix . 58 Exhibit 10 Alternative types of single-campus higher education institutions . 59 Exhibit 11 Alternative types of higher education institutions with campuses abroad . 61 Exhibit 12 The metanational higher education institution . 74 xiii.
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