GLOBALIZATION OF MANAGEMENT EDUCATION: Changing International Structures, Adaptive Strategies, and the Impact on Institutions This page intentionally left blank GLOBALIZATION OF MANAGEMENT EDUCATION: Changing International Structures, Adaptive Strategies, and the Impact on Institutions Report of the AACSB International Globalization of Management Education Task Force AACSB International – The Association to Advance Collegiate Schools of Business 777 South Harbour Island Boulevard Suite 750 Tampa, Florida 33602-5730 USA Tel: + 1-813-769-6500 Fax: + 1-813-769-6559 www.aacsb.edu United Kingdom North America Japan India Malaysia China Emerald Group Publishing Limited Howard House, Wagon Lane, Bingley BD16 1WA, UK First edition 2011 Copyright r 2011 AACSB International. Reprints and permission service Contact: [email protected] No part of this book may be reproduced, stored in a retrieval system, transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without either the prior written permission of the copyright holder or a license permitting restricted copying issued in the UK by The Copyright Licensing Agency and in the USA by The Copyright Clearance Center. No responsibility is accepted for the accuracy of information contained in the text, illustrations or advertisements. The opinions expressed in these chapters are not necessarily those of the Editor or the publisher. British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library ISBN: 978-0-85724-941-8 Emerald Group Publishing Limited, Howard House, Environmental Management System has been certified by ISOQAR to ISO 14001:2004 standards Awarded in recognition of Emerald’s production department’s adherence to quality systems and processes when preparing scholarly journals for print Globalization of Management Education Task Force Robert F. Bruner (Chair) Edward A. Snyder Dean and Charles C. Abbott George Shultz Professor of Professor of Business Economics Administration Booth School of Business, Darden Graduate School of Business The University of Chicago Administration, University of Virginia Pierre Tapie Groupe ESSEC President Arnoud De Meyer ESSEC Business School Paris - President Singapore Singapore Management University Hildy Teegen Pankaj Ghemawat Dean Anselmo Rubiralta Professor of Darla Moore School of Business, Global Strategy University of South Carolina IESE Business School Peter W. Wolnizer Jaime Alonso Gomez Dean Distinguished Professor, The University of Sydney Business International Strategy and School Management Instituto Tecnolo´gico y de Estudios Daniel R. LeClair Superiores de Senior Vice President and Chief Monterrey - Campus Monterrey Knowledge Officer Stefanie Lenway AACSB International Eli and Edythe L. Broad Dean, Juliane Iannarelli Eli Broad College of Business, Director, Global Research Michigan State University AACSB International M. Rammohan Rao Professor and Dean Emeritus Indian School of Business This page intentionally left blank Acknowledgements The vision of current and past members of the AACSB Board of Directors and its Committee on Issues in Management Education has made this report possible. We thank them for the opportunity to serve and for the knowledge gained, and we commend AACSB leadership for empowering us to delve deep into the subject and to be direct about our conclusions, even when they point to huge opportunities to improve. We especially appreciate the support and patience of John Fernandes, AACSB President and CEO, and AACSB previous, current, and future chairs Howard Thomas, Andrew Policano, and Jan Williams. Such an ambitious report as this one does not happen without research support from many talented people. We thank AACSB research staff, particularly Hanna Drozdowski, Amy Memon, and Colin Nelson for support in gathering and understanding information and examples that are found throughout this report; AACSB knowledge services staff, particularly Jessica Brown and Joe Mondello, for support in developing and administering the AACSB Member Collaboration Survey 2008, as well as for support in analyzing the data; Crystal Jiang of Bryant University College of Business and Masaaki Kotabe of Temple University Fox School of Business for a useful literature review and briefing; Darden student Jonathan Stanewick for analytical support; and Bernard Yeung for collaborating with AACSB and Pankaj Ghemawat on a survey of academic thought leaders. We wish to recognize contributors to our case studies: Rolf D. Cremer, China Europe International Business School; Blair Sheppard, Duke University, The Fuqua School of Business; Maria Tereza Fleury and Ligia Maura Costa, Fundac-a˜o Getulio Vargas, Escola de Administrac-a˜odeEmpresasdeSa˜o Paulo; Leonard Cheng, Steve DeKrey, and Kate Chan, Hong Kong University of Science and Technology, School of Business and Management; John Roberts, Stanford University, Graduate School of Business; Bill Kooser, The University of Chicago, Booth School of Business; Michael Houston and Anne D’Angelo King, University of Minnesota, Carlson School of Management; and William R. Folks Jr., University of South Carolina, Moore School of Business. viii Acknowledgements Countless other business school leaders have made thoughtful contribu- tions to the report. Many of them delivered conference presentations and wrote articles that were helpful. Their names appear in footnotes throughout this report. Others inspired us through other, less formal channels: on the phone, in the hallways at events around the world, and through e-mail. Though they are too many to name, we thank them all and hope that each can see in our words the contributions they have made. Finally, we thank Emerald Group Publishing, especially Bill Russell, for demonstrating an unwavering commitment to management education and for not hesitating to step up when we called for their expertise and assistance in publishing the report. We thank Lee Davidson for editing the report and Duncan Elliott for managing the design process. Contents Foreword xi 1. Introduction 1 1.1. Importance and Urgency of the Subject 3 1.2. What is ‘‘Globalization’’? What Does It Mean to Be ‘‘Global’’? 7 1.3. Globalization of Business and Business Schools 9 1.4. Overview of the Chapters and a Summary of Some Key Findings 21 2. The Global Nature of Management Education 31 2.1. Early Phase Globalization: The Global Emergence and Diffusion of Management Education Models and Practices 32 2.2. Management Education Today: Characterizing the Global Nature of Students 37 2.3. Management Education Today: Characterizing the Global Nature of Providers 51 2.4. What Today’s Landscape Means for Globalization of Management Education 77 3. The Fault Lines of Management Education Globalization 79 3.1. The Promise of Globalization 79 3.2. The Fault Lines of Globalization 82 3.3. Implications 102 4. Responses to Forces of Change: A Focus on Curricular Content 105 4.1. The Curricular Imperative 106 4.2. Barriers to Globalizing Curricula 111 4.3. Globalizing Curricular Content 115 4.4. Structuring Global Content: Insertion, Infusion, and Interlock 125 4.5. Structuring Global Experiences: Immersion and Interlock 139 4.6. Assessment of Learning Outcomes 150 4.7. Summary 155 x Contents 5. Responses to Forces of Change: A Focus on Structures and Processes 157 5.1. Augmenting Capabilities through Strategic Partnerships 158 5.2. Collaborative Degree Program Models 170 5.3. Establishing a Presence Abroad 175 5.4. Faculty Strategies 180 5.5. Pulling It All Together/Building a Strategy 193 6. Summary and Implications 201 6.1. Globalization of Management Education: Benefits to Global Society 202 6.2. Performance 205 6.3. Challenges to the Globalization of Management Education 211 6.4. Implications for Management Educators 216 6.5. Role of Industry-Wide Initiatives 223 6.6. Our Appeal to Governments and Policy Makers 230 6.7. Recommendations for Additional Research 231 6.8. Concluding Remarks 233 Appendix: Case Studies of Business School Globalization Strategies 235 China Europe International Business School 236 Duke University, The Fuqua School of Business 245 ESSEC Business School Paris-Singapore 256 Fundac-a˜o Getulio Vargas-Sa˜o Paulo, Escola de Administrac-a˜o de Empresas de Sa˜o Paulo (FGV-EAESP) 266 Hong Kong University of Science and Technology (HKUST), School of Business and Management 275 Stanford University, Graduate School of Business 283 The University of Chicago, Booth School of Business 292 University of Minnesota, Carlson School of Management 299 University of South Carolina, Moore School of Business 308 Bibliography of Works Cited 319 AACSB International Board of Directors 337 AACSB International Committee on Issues in Management Education 338 About AACSB International 339 About Emerald Group Publishing 341 Foreword A common question frequently posed to those of us who have been dean for as long as I have is, ‘‘How have business schools changed over the past two decades?’’ My response is simple: the difference is night and day. Today, business schools are expected to be much more customer-focused, entrepre- neurial, and self-reliant. And perhaps most important, today business schools need to be more global. They depend on ‘‘selling their products’’ to an increasingly global market that demands students who are prepared to implement global strategy and who possess international experience, cultural awareness, and the ability to work in cross-cultural environments. Through significant