Globalisation of Management Education

Globalisation means different things to different people. For understanding the term 'Globalisation,' two dissimilar approaches are useful – perceiving it as a phenomenon or considering it as a process.


Globalisation of Management Education: A Phenomenon

Globalisation as a phenomenon, is perceptible through the increasing interaction of people; the growth of the international flow of money, and exchange of ideas and culture.

Affluent segments of the population in emerging countries are attracted towards western business schools as is seen through –

• Large number of students from third world countries attending campuses in the west;
• Localised programmes on offer by the western schools in the emerging countries, either delivered alone or jointly with local players;
• Campuses of western business schools being opened in emerging countries

Quite a few business schools in Africa, Asia, Eastern Europe and South America now offer

• Nearly the same global knowledge of Management
• Provide similar contexts of learning and grading, and
• Are internationally accredited and globally ranked

The phenomenon of Globalisation of Management Education is visible.


Globalisation of Management Education: A Process

Globalisation is a process by which businesses or other organizations develop international influence or start operating on an international scale - an economic process of integration which has social and cultural aspects as well.

Western Business schools have implemented the following process for Globalisation -

• Transfer of knowledge to the emerging markets through licensing, franchising, direct entry or offer as open-source; for example HBS licenses use of its materials by other schools and has set up its operations in India
• Training faculty from business schools in emerging markets on western methods of instructions, either free or at a fee; for example - International Teachers' Programmes
• Short-period release of faculty to take up visiting assignments at business schools in emerging markets

Business schools in emerging markets have adopted the following process for Globalisation -

• Bundling publicly available knowledge usually from the western schools
• Imitating their teaching methodology, learning context and grading systems
• Joining international networks like PIM, EFMD, AAPBS and AMDISA (Partners in International Management, European Foundation for Management Development, Association of Asia-Pacific Business Schools and Association of management Development Institutions in South Asia)
• Enabling exchange of students and collaborating on executive education through bilateral agreements
• Exchange of faculty – for teaching, research and training
• Presence in international conferences and networking
• Pursuing international accreditation like EQUIS, AACSB and AMBA
• Becoming part of the international rankings

The process of Globalisation in terms of the western schools influencing the schools in emerging markets was always visible. A minority of schools in the emerging markets are climbing up the learning curve and receiving international acceptance of "being as good as" amongst faculty, employers and potential students through the above process.


Opportunities for India from Globalisation of Management Education

If people are entrusting medical professionals in emerging countries with their bodies and lives what would prevent local and foreign seekers of business education from going to alternative providers in countries with a viable value proposition and able to deliver good instruction, on campus or online, at a much-reduced cost?

As low-cost, low-quality, low-price players from the emerging markets gain experience and build brands, they could inevitably attract high quality resources and target higher-end market segments. They could challenge incumbents sitting at the top of the pyramid - the core of disruptive innovation.

Here lies the greatest opportunity for the PGDM Institutions in India to meet the fallout from the IIM Bill. (See my blog post titled - IIM Bill Impacts the Non-IIMs More). These institutions can develop a strategic response through embracing Globalisation, something that the IIMs cannot initiate being guided by local obligations and compulsions.

These institutions will however face serious constraints in Globalising emanating from ambiguity of their purpose and the capability and capacity of the people within the business schools in India. (See my blog post titled - Unravelling the Indian MBA). Not only would these schools need to overcome such ambiguity and constraints, they would need to reinvent the Management Education (See my forthcoming blog post titled - Reinventing Management Education)

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