Proceedings of the 19th CEEMAN Annual Conference 21-24 September 2011 Tbilisi, Georgia Management Education in a Changing World: Are We Ready for the Challenge? CIP - Kataložni zapis o publikaciji Narodna in univerzitetna knjižnica, Ljubljana 37:005(082) CEEMAN. Annual Conference (19 ; 2011 ; Tbilisi) Management education in a changing world : are we ready for the challenge? : proceedings of the 19th CEEMAN Annual Conference, 21-24 September 2011, Tbilisi, Georgia / [editor Michael Minkov]. - Bled : CEEMAN, 2011 Published by CEEMAN Prešernova cesta 33, 4260 Bled, Slovenia ISBN 978-961-92270-7-7 www.ceeman.org 1. Gl. stv. nasl. 2. Minkov, Michael 259194880 Circulation: 700 copies Management Education in a Changing World: Are We Ready for the Challenge? Proceedings of the 19th CEEMAN Annual Conference 21-24 September 2011 Tbilisi, Georgia Content 4 Day 1: Conference Opening 4 Welcome words Danica Purg,CEEMANPresident,Slovenia Kakha Shengelia,PresidentofCaucasusUniversity,Georgia Ramaz Nikolaishvili,MinisterofRegionalDevelopmentand InfrastructureofGeorgia 8 Keynote: Georgia – Past, Present, and Future Dimitri Gvindadze,MinisterofFinance,Georgia 14 Day 2: Focus on Change: The Global and Local Landscape, Business, and Business Education 14 Conference introduction by the chairperson Nakiye Boyacigiller,Dean,SabanciUniversity,Facultyof Management,Turkey 16 Business Opportunities and Challenges in Georgia and Caucasus Kakha Baindurashvili,PresidentofGeorgianChamberof CommerceandIndustry,ChairmanoftheSupervisoryBoardof GLCatGeorgianLotteryCompany,ChairmanoftheSupervisory BoardatGeorgianPostLtd.,ManagingDirectoratWillsfortLLC, Georgia 22 Panel: Emerging Markets and the Changing Business Landscape Jean-Pierre Lehmann,Founder,TheEvianGroup,Professor EmeritusIMDLausanne,Switzerland Peter Kraljič,DirectorEmeritus,McKinsey,Slovenia/Germany Pavlo Sheremeta,PresidentandInstituteSeniorFellow, MBOSI-MalaysiaBlueOceanStrategyInstitute,Malaysia/Ukraine 31 Parallel workshops: How Changes in the Global and Local Business Landscape Are Felt in Business and Business Education 31 Summary of Workshop 1: Business in Search for New Learning and Educational Inputs Robert Whieldon,CorporateDevelopmentDirector, UniversityofLeeds,BusinessSchool,UK 32 Summary of Workshop 2: Business Education in Search for New Learning Partnerships with Businesses Marina Karchava,Vice-Rector,FreeUniversityofTbilisi, Georgia Day 3: Is Business Education on Track? 34 Panel: Do Business Schools Teach What Their Customers Need? 34 Nana Adeishvili,CompetitivenessAnalyst/Strategist,Georgia Antonio Gelis Filho,ProfessorofManagement,FGV-EAESP,Brazil Olga Saginova,DirectorofPlekhanovGraduateSchool, PlekhanovRussianUniversityofEconomics,Russia John Powell,Director,UniversityofStellenboschBusinessSchool, SouthAfrica Edward Sandoyan,Vice-RectorforUniversityEducation Development,HeadoftheDepartmentofEconomicsand Finance,Russian-ArmenianStateUniversity,Armenia Panel: Is Management Research Appropriately Impacting Practitioners, 42 Teaching, and New Theory Development? Teimuraz Vashakmadze,SeniorLecturer,IBS-Moscow,RANEPA, Russia Zoltan Buzady,AssociateProfessor,CEUBusinessSchool,Central EuropeanUniversity,Hungary Olexandr Savruk,Dean,KyivMohylaBusinessSchool,Ukraine Janina Jozwiak,ProfessoratWarsawSchoolofEconomics, DirectorofFORUMAssociationofManagementEducation, Poland Larissa Winter,CEEMANDirector,Slovenia/Austria Ilyas Ciloglu,DeanofBusinessFaculty,InternationalBlackSea University,Georgia Panel: Do Business Schools Have and/or Build the Right Faculty to Meet 49 the Future? Irina Sennikova,Rector,RISEBA-RigaInternationalSchoolof EconomicsandBusinessAdministration,Latvia Jim Ellert,EmeritusProfessorandformerAssociateDeanof Faculty,IMD,Switzerland,CEEMANIMTAAcademicDirector Sergey Mordovin,RectorandCEO,IMISP-International ManagementInstituteofStPetersburg,Russia Paata Brekashvili,Professor,CaucasusUniversity,Georgia List of conference participants 56 About the organizers 62 List of previous CEEMAN Annual Conference Proceedings 64 Day 1: Conference opening Welcome words Danica Purg, President of CEEMAN and IEDC-Bled School of Management, Slovenia Dear ladies and gentlemen, dear friends, Welcometothe19thCEEMANConfer- enceinTbilisi,Georgia. I would like to start with a few words about CEEMAN because we have quitealotofnewmembershere.Since thelastconferencein2010,wegot28newmembers,addinguptodayto 192membersfrom48countries.Wearereallybecomingaglobalassocia- tion;roughlyhalfofourmembersarefromtheCentralandEasternEuropean region,whereastheotheronesarefromallovertheworld.Inspiteofthat, wearestillkeepingouroriginalname:CEEMAN-CentralandEastEuropean ManagementDevelopmentAssociation.Weareespeciallyhappytohave twoAfricanmemberswithustodaybecausewebelievethatwehavealot tosharewithotheremergingeconomies.Twentyyearsagoweweresimply mimickingtheWestbutthenweadoptedtheslogan“Giveusthebestofthe Westandkeeptherest!” Wehavecomealongwaybynow.Wehavegatheredimportantknowledge andskillsandcreatedsomefantasticschools.Thisenablesustoshareour expertiseaboutsocietaldevelopmentwithothers.Thisiswhywehavesetup CEEMAN:itisanassociationwithafocusonemergingeconomies.Thisspring IparticipatedintheeventsoftheAfricanAssociationofBusinessSchools.I wasextremelyhappytowitnessthequalityofthebusinessschoolsthereand thehighconcernformanagementeducationforthebenefitofsocietyat large.Iwaspleasedbecauseourownfocusintheeducationprocesshas neverbeenonprofitabilitybutonsustainabledevelopmentandtherespon- sibilityofmanagementschoolstocreateabetterworld. AsIsaid,weestablishedCEEMANtoacceleratemanagementandleader- shipdevelopmentinCentralandEasternEurope,aimingtosethighquality standardsinthispartoftheworld.Wesetupourorganizationinatimeof bigchangeandgrowingglobalcomplexity.Nowadays,thechangeiseven moreprofoundthanitusedtobe19yearsagoandthecomplexityisgrow- ing.IamsurethatGeorgiaisanexcellentcaseinpoint. Thetitleofourconferenceis“ManagementEducationinaChangingWorld; AreWeReadyfortheChallenge?”Naturally,theansweris“No”.Wearenever readybecauseweareconfrontedwithacontinuouslychangingenviron- ment.Therightquestioniswhetherweknowenoughabouttheworld,and particularlyaboutthebusinessworld.Areourfacultyprofessionalenough? Areweflexibleenoughandopentonewknowledgeandnewmethodolo- gies?Arewewillingtocooperatewithothersandsetupnewpartnershipsin ordertoserveourcustomersbetter?Thesearetheissuesthatourconference willdealwith. IamconvincedthatourpartnersfromCaucasusUniversity,CaucasusSchool ofBusinesshavepreparedeverythingtomakethisconferenceagreatsuc- 4 cess.Itisarareoccasiontoarriveatanairportatthreeinthemorningand seethepresidentofthebusinessschoolwaitingforyouthereincaseyou needsomehelp.ThishospitalitymakesCEEMANdifferentfromotherassocia- tionsandmakesusfeellikealargefamily.Iamsurethatthelatestmembers willbereceivedaswarmlyaseverbefore. Iwishyouagreatstayinthisbeautifulcountryandalotofusefullearning, reflection,andmotivationforcontinuousimprovementofthequalityofman- agementeducationineveryrespect.Ihopeyouwillbuildnewpartnerships andfriendships. Kakha Shengelia, President of Caucasus University, Georgia Ladiesandgentlemen, Wearehappytohaveyouherewithus. Iamhappybecausewehavebeentry- ingforyearstogetTbilisionCEEMAN’s agenda.Iamalsohappybecauseitis mybirthdaytoday. I am thankful to Danica Purg and I wouldalsoliketothankDimitriGvindadze,theGeorgianministeroffinance, forbeingwithustoday.Heisgoingtotalkaboutthepast,presentandfuture ofthiscountry. Asthehostofthisevent,IamverypleasedtoopenthisCEEMANconference onthechallengesofmanagementeducationinachangingworld.Ourinsti- tutionisthefirstCaucasianmemberoftheCEEMANfamily.Wewouldliketo contributetothebuildingoflinksbetweenschoolsinEuropeandworldwide. AsthepresidentofCaucasusUniversity-whichisoneoftheleadingeduca- tionalinstitutionsintheregion-Iwouldliketosayacoupleofwordsabout us.Theuniversitywasfoundedin1998withanUSAIDgrantastheCaucasus SchoolofBusiness.Itbecameafully-fledgeduniversityin2004.Asoftoday, wehavemorethan4,000studentsinsevenschools.Wehavepartnersthat participatewithusindouble-degreeprogramsin64countriesthroughout theworld. Iwouldliketothankyouallforcoming,especiallyourneighbors-Armenians, Azeris,Turks,Russians,andIranians.OnceDanicatoldmethatunlesswegot theRussiansonourside,GeorgiacouldneverbeahosttoaCEEMANcon- ference.Therefore,IextendmyspecialgratitudetotheRussiandelegates atthisconference.Allofourneighborswillenjoyourhospitalityandwewill makethemallfeelathome.Wewouldalsolikethemtofeelpartofoursuc- cessbecauseitisalsotheirsuccess. Ihopethattheimplicationsofthisconferencewillreachfarbeyondtheaca- demicandprofessionalbusinessdomaininwhichitisset.Ihopethatitis goingtobeanelementofourintegrationtotheEuropeanUnionandofthe brightfutureofthisbeautifulcountry. Lastbutnotleast,Iwanttothankmyteamformakingthishappen.Thankyou, Danica,onceagainbecauseweowethishonortoyou. 5 Ramaz Nikolaishvili, Minister of Regional Development and Infrastructure of Georgia Iamveryhappytohavebeeninvited tospeakatthisconference.Thesethree days are an excellent opportunity to learn about reforms in Georgia and comparethesituationinthepastwith whathasbeenachievedbynow. ThankyouverymuchforcomingtoGeorgia.Theministeroffinance,who isgoingtospeakrightafterme,willtellyouthattherearemanyimportant projectsgoingoninourcountry.Theexperienceofyoureducationalcen- tersisveryimportant.Ihopethatthisisagoodstartofafuturecooperation becausemanypeoplewillsharetheirexperiencesduringthesethreedays. Ourgovernmentworksaroundtheclockinordertoachieveabreakthrough in the economy. Because we have to keep in mind the environment,