MBA Graduates Research Articles

Business School Education and Entrepreneurial Human Capital

This paper is the first to study the role of business school education in the creation and success of venture capital (VC) backed startup firms. Using a large new dataset of the educational backgrounds of entrepreneurial founders and executives and detailed data on business school rankings, we find that (i) almost a quarter of VC-backed startups over 1990-2010 are launched by founders with formal business education and two-thirds of startups have an executive with a business school degree, (ii) VC-backed startups experience better exit outcomes when their executive teams include MBA graduates, and (iii) startups are significantly more likely to retain a founder with an MBA as a post-IPO CEO. Consistent with a networking mechanism, 29% of VC-backed startups have at least two executives from the same business school, and 13% of startups have at least one executive and one VC director from the same business school. Such startups with connected executives are significantly more likely to successfully exit through an IPO or an acquisition. Overall, our findings provide evidence on the role of business schools in promoting the formation of professional networks and the acquisition of skills important for launching a successful startup.

Learning Not to Diversify: The Transformation of Graduate Business Education and the Decline of Diversifying Acquisitions

Once a preferred strategy, corporate diversification into disparate lines of business has gradually declined in the U.S. over the past several decades. We argue that changes that occurred in a closely related domain—graduate business education—are important in understanding variation in de-diversification across firms. Building on a historical account of the transformation of business education, we explain how the rise of financial economics and agency-theoretic logic in business education changed students’ views about diversification. Nearly 20 years later, these MBA graduates rose to top decision-making positions and put the brakes on diversification. Using data on CEOs who ran 640 large U.S. corporations from 1985 to 2015, we show that CEOs who earned an MBA before the 1970s actively pursued diversification, whereas the next cohort of CEOs, who had been exposed to agency-theoretic logic in financial economics, refrained from it. We also demonstrate that the degree of managerial discretion moderated the effect of the CEO’s MBA education. Our study shows that institutional change in one domain (i.e., business education) contributed to change in another domain (i.e., corporate diversification), albeit with a considerable time lag.

Hesitation to adoption in the e-grocery retailing in an emerging market

The study aims to identify the various factors influencing adoption of e-grocery in India. The factors which have been analysed in this study include guidance for shopping, transaction security, sensory perception while shopping and product assortment and availability. The impact of these factors has been studied on perceived risk, perceived communicability, perceived compatibility and perceived complexity. The interactions have been hypothesised to influence customer's choice of shopping for groceries online. The sample has been selected from the MBA graduates from a leading business school in India as these MBA graduates have joined the program after the work experience and majority of them are married and they are the prospective innovators which will contribute hugely in the success of e-retailing in India. Questionnaire has been administered to 500 respondents and 440 responded. Multiple regression analysis has been used to analyse the data. A thorough understanding of the factors influencing online grocery purchase adoption could lead to the designing effective marketing mix by online retailers to grow their business.

Hesitation to adoption in the e-grocery retailing in an emerging market

The study aims to identify the various factors influencing adoption of e-grocery in India. The factors which have been analysed in this study include guidance for shopping, transaction security, sensory perception while shopping and product assortment and availability. The impact of these factors has been studied on perceived risk, perceived communicability, perceived compatibility and perceived complexity. The interactions have been hypothesised to influence customer's choice of shopping for groceries online. The sample has been selected from the MBA graduates from a leading business school in India as these MBA graduates have joined the program after the work experience and majority of them are married and they are the prospective innovators which will contribute hugely in the success of e-retailing in India. Questionnaire has been administered to 500 respondents and 440 responded. Multiple regression analysis has been used to analyse the data. A thorough understanding of the factors influencing online grocery purchase adoption could lead to the designing effective marketing mix by online retailers to grow their business.

Factors influencing management development of MBA students: Exploring concerns of business schools in Pakistan

The purpose of this study is to explore factors that reinforce or obstruct business schools in Pakistan to develop managerial knowledge, skills and work-based learning experiences of MBA students. The study is prompted by growing debates about insufficiencies in business schools to prepare MBA graduates based on managerial capital needs in the regional markets. To understand the reasons of insufficiencies from business school’s viewpoint, this study employs qualitative interviews to explore factors that reinforce or obstruct business schools. Deans, faculty members and administrators of five different business schools in Hyderabad, Pakistan participated in this study. Responses of the participants are transcribed into verbatim reports and description of findings is structured in SWOT analysis format. Findings show sixteen different factors, comprising of four strengths, seven weaknesses, three opportunities, and two threats. There are more number of weaknesses of business schools to develop MBA students. However, business schools have some strengths and opportunities which they may utilize and improve. Radical changes would strive from the higher education authority. Conceptual framework presented in this study recommends that higher education authority may lead the change, cooperate between business schools and stakeholders, and support business schools to develop future managers and leaders through MBA programs.

Organizational Socialization Process of MBA Graduates

ABSTRACT Extant literature on organizational socialization has not focused on the relation of education and learning with adjusting to work. As a result, little is known about the contribution of an MBA learning experience towards the process of organizational socialization. The purpose of this study is to understand the organizational socialization process of MBA graduates in their first six months of work. This qualitative study involved interviews with MBA graduates who had been employed within a period of one to six months. This study found that MBA graduates utilized their communication and analytical skills that were enhanced during the MBA education in support of their socialization tactics of relationship building, information gathering and learning. Graduates’ skills and prior experiences were mobilized through the facilitation of immediate superiors and/or supported by mentorship and help by senior co-workers. Keywords: Organizational socialization; socialization process; MBA learning; experience; training ABSTRAK Kebanyakan literatur sedia ada mengenai sosialisasi organisasi tidak menumpukan kepada hubungan antara pendidikan dan pembelajaran dengan alam pekerjaan. Kesannya, pemahaman tentang sumbangan pengalaman pembelajaran program Sarjana Pentadbiran Perniagaan terhadap proses sosialisasi organisasi adalah masih di tahap yang rendah. Justeru, kajian ini bertujuan untuk memahami proses sosialisasi organisasi dalam kalangan graduan MBA dalam tempoh enam bulan pertama mereka bekerja. Kajian kualitatif ini melibatkan temubual dengan graduan MBA yang telah bekerja bagi tempoh satu hingga enam bulan. Kajian ini mendapati bahawa graduan MBA menggunakan kemahiran komunikasi dan analitikal mereka yang telah diperkukuh semasa mereka mengikuti program Sarjana Pengurusan Perniagaan bagi menyokong taktik sosialisasi mereka termasuk dalam menjalin hubungan dengan rakan kerja, mengumpul maklumat dan pembelajaran. Kemahiran graduan dan pengalaman terdahulu digarapkan melalui pertolongan dari ketua jabatan dan/atau mentor dan pekerja senior. Kata kunci: Sosialisasi organisasi; proses sosialisasi; pembelajaran MBA; pengalaman, latihan

West Kendall Baptist Hospital: meeting the demand of community-based healthcare in the new (and stormy) regulatory environment

Synopsis The first three years of operation of the West Kendall Baptist Hospital (WKBH) in Miami, Florida provided a “poster child” for efficient and cost effective healthcare delivery to the West Kendall community that it served. The hospital leadership and management team exemplified a quality-oriented staff that moved as a cohesive and dedicated organization. WKBH exceeded every budget prediction and showed a profit in year 3, well before expected. Then came the winds of regulatory change. With the passage of the Affordable Care Act (ACA) and the attendant imposition of new reimbursement metrics, the picture at WKBH changed almost overnight. By the first quarter of 2016, WKBH started to lose money in excess of budget predictions despite its increased patient admissions, careful financial planning, expense reductions, quality service, and excellence in patient care delivery. A serious financial crisis was looming with little relief in sight. The hospital management team began to search for solutions. Research methodology The research methodology includes collecting quantitative data: original financial statements and financial data from WKBH, as well as qualitative data: interviews of hospital administrators and historical information. Relevant courses and levels Graduate capstone course in a finance course; masters in health administration; and/or the MBA program. Theoretical bases While it is clear that the ACA was designed with all good intentions, it has created substantial and perhaps, unanticipated financial burdens for caregivers. These issues are not only faced by WKBH. Most hospitals could relate to one or more of the four questions examined as part of this learning process. Graduate MBA students worked with the hospital to identify, define, focus, and resolve difficult quantitative and qualitative issues faced by the hospital as a result of major changes in the regulatory environment with the passage of the ACA. This case focuses upon the current reimbursement environment that has only recently emerged as a result of the implementation of the ACA.

Ahead of the curvein the MBA bubble: Institutional narcissism and the narrative reconstruction of moral agency

AbstractAcademic criticism of institutional narcissism in business schools is well established. But little scholarly attention has been devoted to insider critics of business schools. Filling this research gap – from an interdisciplinary narrative perspective – is the aim of this article. It draws attention to one of the many autobiographical narratives that have recently been published by MBA graduates. Narcissism here appears as an important theme, both on an institutional and a personal level. What role does narration play for coping with narcissism? To explore this question, this paper offers a close reading ofAhead of the curve: Two years at Harvard Business School(2008) by Philip Delves Broughton. After a brief introduction to institutional narcissism and organizational narrative studies, the article illustrates how narrative functions as a sense-making tool for understanding institutional narcissism and as a means to reconstruct individual moral agency. The study pushes the frontiers of narrative studies by providing an innovative blend of empirical organizational research and literary studies, while also touching upon genre, interdisciplinarity, and the ethical responsibility of business in society.

Are There Gender Differences in Professional Self-Promotion? An Empirical Case Study of LinkedIn Profiles Among Recent MBA Graduates

Women are more modest than men in expressing accomplishments, referred to as the “feminine modesty effect”. Given the importance of highlighting accomplishments and skills for professional advancement, our research revisits the classical question of equal opportunity with a modern dataset to examine how women leverage LinkedIn, a professional social networking site. We first apply propensity score matching methods to identify a subset of similarly qualified female and male U.S. users who recently graduated/will be graduating (2011-2017) from a top-ranked MBA program as indicated on their LinkedIn profile. We then analyze gender differences in online self-promotion choices, an often overlooked aspect of understanding the role of gender in the professional hiring pipeline. Among matched subsets of female and male users, we find that females are less likely relative to males to utilize data fields that require writing in free-form such as the Summary and Job Description fields. However, we find for most universities that females and males are equally likely to include more structured data fields such as Honors and Skills, and for some universities females are more likely to include at least one Skill. This work begins to quantify gender biases in user-provided data and introduces important considerations for how self-presentation choices affect professional opportunity in online hiring platforms.

A study of the impact of business education on global career mobility

PurposeThis paper aims to develop a clearer understanding of the role of business education and business schools in fostering global mobility. As business schools seek to educate managers who can work globally and adjust to new business and cultural environments, it is important to assess which specific dimensions of business education, such as the location of the school and its curriculum, play a significant role in fostering greater global mobility among business graduates. This also helps how business schools potentially influence global talent flows.Design/methodology/approachThis study uses an empirical research methodology in the form of a multivariate analysis to examine a sample of 91 business schools that are accredited by Association to Advance Collegiate Schools of Business (AACSB) in the 2015 Financial Times Global MBA Ranking.FindingsThis study finds that international mobility of MBA graduates is mediated both by the design of the curriculum and the location of the business school. MBA graduates from leading business schools that offer greater levels of international experiential learning are more likely to pursue overseas careers after graduation. MBA graduates from leading business schools that are located in economically globalized locations, by contrast, are often more likely to remain in the country where they studied after graduation to pursue local employment opportunities.Originality/valueThis paper contributes to the knowledge of how business education influences the international mobility of business graduates and how it influences global talent flows.

Determinants and outcomes of faculty consulting from management teachers’ perspective

PurposeThe purpose of this paper is to explore the major determinants that influence the management teachers to practice management consulting. The second objective of this research is to understand how the experience in management consultancy leads to value addition in their class room teaching.Design/methodology/approachTo address the first research objective, focus group discussions were conducted with management teachers practicing consultancy. These results were used to generate items for the questionnaire. Factor analysis performed on the data revealed six determinants influencing management teachers to engage in consulting activity. To address the second research objective, focus group discussions with MBA graduates were used to comprehend how teachers with management consulting experience enrich the pedagogy.FindingsThe major findings of the study suggest that the determinants influencing management teachers to practice consulting are: improving competencies, furthering professional advancement, accruing strategic and financial benefit, enabling holistic development. Through study 2, the authors found out that management teachers add value in pedagogy by forging corporate world connection through real-time examples, enable critical thinking by breaking established paradigms, effective classroom delivery through storytelling, etc., and lending student support by assuming a mentor’s role.Practical implicationsThis study found that faculty consulting reduces the perceived gap between the industry and academia and it also leads to effective class room teaching.Originality/valueThe study is the first attempt to empirically test the determinants influencing management teachers to practice consultancy services and qualitatively assess how the consultancy experience enriches the in-class performance.

What's in a Family Legacy? Balancing Family Emotions and Business Growth at Luse Holdings

After decades of continuity, Luse Holdings faced a new challenge in 2015. The company needed to pivot in a changing industry context—specifically, Luse had lost a bid to a non-union competitor for the first time—and CEO and fourth-generation member Steve Luse was considering three primary options: (1) continue as is, while also adding non-union services; (2) sell part of the business to reduce family risk; or (3) sell the entire business to fund other family interests. A fourth possible option was a maximization-of-growth alternative. This decision involved more than business considerations alone. The family's legacy as an industry champion and community philanthropist also required considering all relevant stakeholders, including immediate and extended family, employees, and community. Complicating the situation was the lack of an immediately identifiable successor in the next generation of the Luse family, though several fifth-generation members had completed internships with the business including Steve's daughter Ashley, a recent MBA graduate. Students will step into Steve's shoes as he considers what recommendations to make to the advisory board six months from now. Students can also take the perspective of Ashley, a rising next-generation member: should she join the family business?

Doug Cook: Acquiring a Business (A)

Doug Cook, an MBA graduate, was wrestling with one of the most important career decisions of his life: Which one of three seemingly promising businesses should he acquire? Each acquisition was a viable opportunity, and each had potential to be a successful business. Cook, however, had heard numerous disconcerting stories about other entrepreneurs going through this process. He realized that until this time the biggest purchase he had made in his life was a $250,000 condominium in downtown Chicago. Acquiring one of these companies would require a financial and personal commitment greater than anything he had ever attempted. He felt a window of opportunity was closing. If he did not act now, he might find himself in the corporate world forever. Cook began by writing up a personal criteria list for his acquisition, then researching online and media sources for businesses for sale. Frustrated with that process, he hired a business broker. With the broker's help, Cook found three promising candidates from which to choose: Luxury Tassels, Inc.; Feldco Windows and Doors, Inc.; and Coyote Consulting Company. The (A) case includes income statements, pro forma forecasts, balance sheets, and organization charts for each company, in addition to Cook's financial analyses and valuation of each company. The (B) case features the letter of intent that Cook gave the owner of the company he selected. Ultimately he did purchase the company, and in the (C) case, Cook examines pathways to growing his newly acquired company.How to be entrepreneurial through acquiring a business The importance of establishing their own decision criteria regarding the type of company they would like to acquire How to research businesses for sale The issues in working with a business broker How to analyze financial statement in the context of buying the company How to make decisions and use financial analysis to support their decisions

Doug Cook: Acquiring a Business (C)

Doug Cook, an MBA graduate, was wrestling with one of the most important career decisions of his life: Which one of three seemingly promising businesses should he acquire? Each acquisition was a viable opportunity, and each had potential to be a successful business. Cook, however, had heard numerous disconcerting stories about other entrepreneurs going through this process. He realized that until this time the biggest purchase he had made in his life was a $250,000 condominium in downtown Chicago. Acquiring one of these companies would require a financial and personal commitment greater than anything he had ever attempted. He felt a window of opportunity was closing. If he did not act now, he might find himself in the corporate world forever. Cook began by writing up a personal criteria list for his acquisition, then researching online and media sources for businesses for sale. Frustrated with that process, he hired a business broker. With the broker's help, Cook found three promising candidates from which to choose: Luxury Tassels, Inc.; Feldco Windows and Doors, Inc.; and Coyote Consulting Company. The (A) case includes income statements, pro forma forecasts, balance sheets, and organization charts for each company, in addition to Cook's financial analyses and valuation of each company. The (B) case features the letter of intent that Cook gave the owner of the company he selected. Ultimately he did purchase the company, and in the (C) case, Cook examines pathways to growing his newly acquired company.How to be entrepreneurial through acquiring a business The importance of establishing their own decision criteria regarding the type of company they would like to acquire How to research businesses for sale The issues in working with a business broker How to analyze financial statement in the context of buying the company How to make decisions and use financial analysis to support their decisions

Doug Cook: Acquiring a Business (B)

Doug Cook, an MBA graduate, was wrestling with one of the most important career decisions of his life: Which one of three seemingly promising businesses should he acquire? Each acquisition was a viable opportunity, and each had potential to be a successful business. Cook, however, had heard numerous disconcerting stories about other entrepreneurs going through this process. He realized that until this time the biggest purchase he had made in his life was a $250,000 condominium in downtown Chicago. Acquiring one of these companies would require a financial and personal commitment greater than anything he had ever attempted. He felt a window of opportunity was closing. If he did not act now, he might find himself in the corporate world forever. Cook began by writing up a personal criteria list for his acquisition, then researching online and media sources for businesses for sale. Frustrated with that process, he hired a business broker. With the broker's help, Cook found three promising candidates from which to choose: Luxury Tassels, Inc.; Feldco Windows and Doors, Inc.; and Coyote Consulting Company. The (A) case includes income statements, pro forma forecasts, balance sheets, and organization charts for each company, in addition to Cook's financial analyses and valuation of each company. The (B) case features the letter of intent that Cook gave the owner of the company he selected. Ultimately he did purchase the company, and in the (C) case, Cook examines pathways to growing his newly acquired company.How to be entrepreneurial through acquiring a business The importance of establishing their own decision criteria regarding the type of company they would like to acquire How to research businesses for sale The issues in working with a business broker How to analyze financial statement in the context of buying the company How to make decisions and use financial analysis to support their decisions

Keddeg Company (B): Succession to the Next Generation of Small Business

A married couple who have a successful industrial B2B business evaluate whether or not to sell the business to two of their offspring, who are both entrepreneurial MBA graduates. Complicating factors include the fact that the sale price and structure need to finance the couple's retirement and give fair inheritance treatment to the remaining siblings. In addition, the father has had some health issues and the business is doing well, so there is a lot of forward momentum to sell to the next generation.Evaluate whether or not, and how, to keep a business founded and run by entrepreneurs as a family business into the sibling generation. Explore "escalation of commitment" and how it influences decisions to keep the business in the family or not.

Keddeg Company (A): Succession to the Next Generation of Small Business

A married couple who have a successful industrial B2B business evaluate whether or not to sell the business to two of their offspring, who are both entrepreneurial MBA graduates. Complicating factors include the fact that the sale price and structure need to finance the couple's retirement and give fair inheritance treatment to the remaining siblings. In addition, the father has had some health issues and the business is doing well, so there is a lot of forward momentum to sell to the next generationEvaluate whether or not, and how, to keep a business founded and run by entrepreneurs as a family business into the sibling generation. Explore “escalation of commitment” and how it influences decisions to keep the business in the family or not.

Keddeg Company (C): March–December 2008: From Go-Go Succession to Non-Family Sale

A married couple who have a successful industrial B2B business evaluate whether or not to sell the business to two of their offspring, who are both entrepreneurial MBA graduates. Complicating factors include the fact that the sale price and structure need to finance the couple's retirement and give fair inheritance treatment to the remaining siblings. In addition, the father has had some health issues and the business is doing well, so there is a lot of forward momentum to sell to the next generation.Evaluate whether or not, and how, to keep a business founded and run by entrepreneurs as a family business into the sibling generation. Explore “escalation of commitment” and how it influences decisions to keep the business in the family or not.

Melissa Daylon

“Hey that was my idea!” How often have your students had that exact thought? Were they on a team when they felt most able to identify with that statement? This case is about a recent MBA graduate who faces challenges within her consulting team on her first post-graduation job. She is frustrated with one teammate in particular who she believes practices self-interest politics–he takes her ideas. The case allows for a healthy discussion on team dynamics and strategies to help students when the team mix is wrong. The case may also be used to discuss issues regarding women in business.

Green Room Productions, Llc

Three MBA graduates have combined their talents to provide professional and technology services to companies in the travel industry seeking to do business via the burgeoning Internet commerce sector. Unable to find sufficient human resources to staff their technology projects, they realize they will need to either (1) close down or (2) relocate for the second time in five months. Relocating was not without risk: Finding a suitable IT talent pool was critical. And family concerns were also important to the partners and their young families. But where to move? What ramifications would these changes have for the business and the friendships? Would roles shift once people were added? And what about initial investments? Excerpt UVA-ENT-0080 Green Room Productions, LLC In November 1995, Trip Davis sat facing his two business partners and fellow Dartmouth alums, Greg Waldbaum and Eric Butz, at the table in the conference room of their Charlottesville, Virginia, office. The three old friends and new business partners had reached a crucial point in their startup business, Green Room Productions. Just five months earlier, they had combined their talents to provide professional and technology services to companies in the travel industry seeking to do business via the burgeoning Internet commerce sector. Since then, the firm had been unable to find sufficient human resources to staff its technology projects. As the weeks dragged on, the partners realized that their business would not succeed in its current location. Now, in the cramped conference room of their fledgling company, the partners considered two options: close the business down or move to another city for the second time in five months. The current conversation focused on the business itself, but each partner knew that the ultimate decision would have a profound impact not only on their business, but also their professional careers and personal lives. Closing the business meant that each would have to seek new employment—and perhaps relocate. Moving the business meant personal relocation was a certainty—but to where? Where could Green Room Productions move to find the human resources it needed to be a viable business? The partners realized that even if they found an appropriate location and decided to move rather than shut down the business, they also needed to consider a new division of the firm's equity stakes. A related consideration was whether it was time to reallocate roles and titles as potential new employees joined the firm? As he listened to the other young men debate the options with rising tension, Davis wondered if Green Room Productions could survive. Above all, he didn't want to “screw up our friendships over the business.” . . .