A holistic framework for the perceived return on investment in an MBA

Abstract

Traditional models for calculating the Return on Investment (ROI) of education examine the costs and benefits of such interventions in financial terms. The aim of this study was to explore other important variables over and above those of a financial nature, which should be considered by MBA students when holistically evaluating the ROI of undertaking this qualification.The study was exploratory and perception based; a pilot contribution to the debate on the value of an MBA and a baseline for further research. In the two-phased study, 54 graduates from Wits Business School articulated a number of input (cost), output (benefits) and process variables that they perceived as important when holistically evaluating the ROI of their studies. An overwhelming majority perceived that the benefits of doing an MBA outweigh the costs, taking all variables into account.Although the findings cannot be generalised to a wider population, a transformation model has been proposed. MBA students and learning facilitators may find this useful when planning MBA programme participation or facilitation, so that students gain the greatest possible value from the undertaking.

Looking for Ways to Increase Student Motivation: Internationalisation and Value Innovation

“…The chosen variables were extracted by content analysis of the works of Useem and Karabel (1986), Baruch et al . (2005) and Carmichael and Sutherland (2005). They are described in Table 1.…”

“…Customer value can be defined as ‘the customers’ perception of what they want to have happen in a specific use situation, with the help of the service or product offering, in order to accomplish a desired purpose or goal' (Woodruff and Gardial, 1996, p. 54). The article infers that for business students the perceived value of education abroad is linked to the value added that foreign education offers, which, when compared with home education, leads to the development of the graduate's competitive advantage (Baruch et al ., 2005; Carmichael and Sutherland, 2005). Consequently, business schools cannot be effective in their mission of meeting the demand for quality education if they are not fully aware of what may possibly represent such perceived value added; what foreign students expect and what are the demands of the global market place.…”

“…Accordingly, in respect of value creation it is important that universities recognise a distinction between the explicit elements of value added related to the anticipated financial remuneration, following the completion of a university programme, and the ‘inner‐value’ elements that need not necessarily hold a monetary representation. Carmichael and Sutherland (2005) identified the following three ‘inner‐value’ components as the most important: (a) increased confidence; (b) broader worldview, insight and wisdom; (c) significantly greater knowledge. Carmichael and Sutherland (2005, p. 67) further point out that, ‘learning facilitators should view students as key stakeholders of the business, with both obligations and expectations of the relationship.…”

“…Carmichael and Sutherland (2005) identified the following three ‘inner‐value’ components as the most important: (a) increased confidence; (b) broader worldview, insight and wisdom; (c) significantly greater knowledge. Carmichael and Sutherland (2005, p. 67) further point out that, ‘learning facilitators should view students as key stakeholders of the business, with both obligations and expectations of the relationship. They should be aware of and empathetic to the cost and benefit variables that are important to students, and support them to experience the holistic range of benefits that they may enjoy’.…”

“…The main survey has produced 54 valid returns. The size of the sample of the survey is similar to other published research in this area (for example, Carmichael and Sutherland, (2005) used a sample of 58; Mihail and Elefterie (2006) of 68). All respondents but one were from mainland China; 55 per cent of respondents were female; the average age of respondents was 22.5 years.…”