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Journal of Education for Business

ISSN: 0883-2323 (Print) 1940-3356 (Online) Journal homepage: http://www.tandfonline.com/loi/vjeb20

Exploring the Value of MBA Degrees: Students’
Experiences in Full-Time, Part-Time, and Executive
MBA Programs
Grady D. Bruce
To cite this article: Grady D. Bruce (2009) Exploring the Value of MBA Degrees: Students’
Experiences in Full-Time, Part-Time, and Executive MBA Programs, Journal of Education for
Business, 85:1, 38-44, DOI: 10.1080/08832320903217648
To link to this article: http://dx.doi.org/10.1080/08832320903217648

Published online: 07 Aug 2010.

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Date: 11 January 2016, At: 22:25

JOURNAL OF EDUCATION FOR BUSINESS, 85: 38–44, 2010
C Heldref Publications
Copyright

ISSN: 0883-2323
DOI: 10.1080/08832320903217648

Exploring the Value of MBA Degrees: Students’
Experiences in Full-Time, Part-Time, and Executive
MBA Programs
Grady D. Bruce
Downloaded by [Universitas Maritim Raja Ali Haji] at 22:25 11 January 2016

California State University, Fullerton, Fullerton, California, USA

Critics of the overall value of the MBA have not systematically considered the attitudes of
MBA students about the value of their degree. The author used data from a large sample of
graduates (N = 16,268) to do so, and to explore predictors of overall degree value. The author
developed separate regression models for full-time, part-time, and executive MBA programs.
The predictor variables are multi-item scales that measure (a) satisfaction with the MBA
degree, and (b) satisfaction with the school or program. Each scale contributes significantly to
the prediction of overall value, and there is little difference in their relative importance in the
regression models.
Keywords: MBA, MBA satisfaction, MBA value, Outcomes assessment, Part-time MBA
programs

Zhao, Truell, Alexander, and Hill (2006) documented negative rumblings about the MBA that have emerged in business
journals and magazines. Chief among these are Pfeffer and
Fong’s (2002) and Mintzberg’s (2004) criticisms. Pfeffer and
Fong questioned the relevance of the educational product of
business schools and asserted, “There is little evidence that
mastery of the knowledge acquired in business schools enhances people’s careers, or that even attaining the MBA credential itself has much effect on graduates’ salaries or career
attainment” (p. 80). Mintzberg said that, “MBA programs are

specialized training in the functions of business, not general
education in the practice of managing” (p. 5).
Bennis and O’Toole (2005) pointed to problems resulting
from business schools’ measuring themselves on the rigor of
scientific research produced by faculty “instead of measuring
themselves in terms of the competence of their graduates. . . “
(p. 98). As a result, “. . . MBA programs face intense criticism
for failing to impart useful skills, failing to prepare leaders,
failing to instill norms of ethical behavior, and even failing
to lead graduates to good corporate jobs” (p. 96).
Because criticisms generally focus on the relevance
of MBA programs to the practice of management, it is
important to ask what schools are doing. Some schools have

Correspondence concerning this article should be addressed to Grady
Bruce, 255 N. El Cielo, Suite 140–225, Palm Springs, CA 92262-6974,
USA. E-mail: gbruce@fullerton.edu

responded with program reviews and curriculum changes
(Ewers, 2005). Rubin and Dierdorff’s (2007) study of 373

schools explored curriculum criticisms and concluded, “the
majority of business school curricula adequately cover key
managerial competency requirements,” but the “competencies indicated by managers to be most critical (i.e., managing human capital and managing strategy/innovation) are the
very competencies least represented in MBA curricula” (p.
2). The Association to Advance Collegiate Schools of Business (AACSB) has not been silent during this period, having
introduced in 2003 new Assurance of Learning standards that
required direct measures of student learning in the context of
established learning goals (Martell, 2007). However, a 2006
survey showed that 37% of MBA programs had not assessed
any learning goals (Martell).
In regard to the effects of an MBA education on students’
careers, Inderrieden, Holtom, and Bies (2006) reported a
positive effect on early career success in their longitudinal
study comparing individuals who completed an MBA degree
with similarly qualified individuals who chose not to pursue
the degree. Zhao et al. (2006) reported positive career effects
over the short and long term. Holtom and Inderrieden (2007)
calculated a 12% annualized return on investment (ROI) for
MBA graduates from top-10 schools and an even higher 18%
ROI for those from schools not in the top 10, evidence that

refutes Pfeffer and Fong’s (2002) claim that students need to
graduate from a top-ranked school to benefit economically
from an MBA.

VALUE OF MBA DEGREES

39

TABLE 1
Sample Sizes and Response Rates
Global MBA graduate surveys
Variable

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Number of schools
Sampling frame
Sample size
Response rate (%)

MBA alumni perspectives surveys

2003

2004

2005

March 2003

April 2004

September 2004

April 2005

93
15,676
4,216
27

128
18,504
6,223
34

128
18,520
5,829
31

5,831
2,383
41

9,148
2,350
26

11,286

3,392
30

10,937
2,209
20

Corporate recruiters responding to the annual surveys that
the Graduate Management Admission Council (GMAC) conducts were asked to summarize their experiences during 2006
with new hires from MBA and other graduate business programs (Murray, 2007). The majority—72%—indicated that
their new hires met their expectations, 24% said they exceeded expectations, whereas 4% said they did not meet
expectations. In regard to managerial competencies, the recruiters indicated that MBAs show better knowledge of general business functions than their non-MBA peers and better
behavioral competencies, such as managing strategy and innovation and decision-making processes. MBAs are at the
same level as their non-MBA peers in managing human capital and in their interpersonal skills, a finding that may not be
expected given the complaints of employers over the years
about the interpersonal skills of new MBAs (Feldman, 2007).
What is missing from these criticisms of the MBA and the
research they have triggered is an evidence-based analysis of
the attitudes of MBA students themselves. The present article
offers that analysis by providing answers to four research

questions as they relate to full-time, part-time, and executive
MBA programs:
Research Question 1 (RQ1 ): How satisfied are students graduating from MBA programs with the potential benefits
of their degree?
RQ2 : How do students rate the schools or programs in which
they are enrolled?
RQ3 : How do students rate the value of the MBA?
RQ4 : To what extent do MBA-degree satisfaction and school
or program ratings predict the value of the MBA?

METHOD
I used data from annual online surveys of graduating students
(Global MBA Graduate Surveys) that the GMAC conducted
to answer these questions (Graduate Management Admission
Council, 2003a; Graduate Management Admission Council,
2004a; Graduate Management Admission Council, 2005).
GMAC invited its member schools and each school listed
in the GMAC internal database to participate. Schools either supplied GMAC with a list of names and e-mail addresses of students intending to graduate in the survey year

or agreed to forward survey invitations directly to students.

GMAC used prenotification messages, reminders to nonrespondents, and monetary incentives to increase response
rates.
Participants
To answer the research questions, I aggregated responses of
graduating students from Global MBA Graduate surveys conducted from 2003 through 2005 (Graduate Management Admission Council, 2003a; Graduate Management Admission
Council, 2004a; Graduate Management Admission Council,
2005) into one sample (N = 16,268). In all, 68% were male
students and 32% were female students; 58% were aged
28–34; 78% were from schools located in the United States;
and 60% were U.S. citizens. Table 1 shows the number of
schools participating, sample sizes, and response rates.1
In discussing the results, reference is made to findings
from four online alumni surveys that the GMAC conducted,
the MBA Alumni Perspectives surveys (Graduate Management Admission Council, 2003b; Graduate Management Admission Council, 2004b; Edgington & Schoenfeld, 2004b;
Schoenfeld, 2005). Sample sizes and response rates for
these surveys are also shown in Table 1. All respondents
to MBA Alumni Perspectives surveys participated in one
earlier Global MBA Graduate survey.
GMAC used a 5-point Likert-type scale ranging from 1
(not at all satisfied) to 5 (extremely satisfied) to measure students’ satisfaction with the following randomly listed nine

potential benefits of the MBA: (a) Preparation to get a good
job in the business world; (b) an increase in career options;
(c) credentials desired; (d) opportunity to improve personally; (e) opportunity for quicker advancement; (f) development of management knowledge or technical skills; (g)
an increase in earning power; (h) opportunity to network
and to form relationships with long-term value; and (i) job
security.
GMAC used a different 5-point Likert-type scale ranging
from 1 (poor) to 5 (outstanding; with the option to select not
applicable) to obtain ratings of the following randomly listed
seven aspects of school or program quality: (a) admissions;
(b) career services; (c) curriculum; (d) faculty; (e) program
management (mission, standards, continuous improvement);
(f) student services; and (g) fellow students.

40

G. D. BRUCE
TABLE 2
Satisfaction With Potential Benefits of the MBA
Program type Ms and SDs
FT (n = 11,672)

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Degree benefit
Preparation to get a good
job
An increase in career
options
Credentials you desired
Opportunity to improve
yourself personally
Opportunity for quicker
advancement
Development of your
management knowledge
or technical skills
An increase in earning
power
Opportunity to network
and to form
relationships with
long-term value
Job security

PT (n = 3,388)

Differences in Msa

Exec (n = 1,002)

M

SD

M

SD

M

SD

FT–PT

Exec–PT Exec–FT

3.9

0.9

3.7

0.8

4.0

0.8

0.2∗∗∗

0.3∗∗∗

4.1

0.9

3.9

0.8

4.2

0.8

0.1∗∗∗

4.1
4.3

0.8
0.8

4.1
4.2

0.7
0.7

4.3
4.5

0.7
0.7

4.0

0.9

3.7

0.8

3.9

4.2

0.8

4.0

0.7

3.8

1.0

3.6

4.0

1.0

3.4

1.0

Effect size (Cohen’s d)
FT–PT

Exec–PT

Exec–FT

0.1

0.2

0.3

0.1

0.3∗∗∗

0.2∗∗∗

0.2

0.4

0.2

0.0
0.1∗∗∗

0.3∗∗∗
0.3∗∗∗

0.2∗∗∗
0.2∗∗∗

0.0
0.1

0.4
0.4

0.3
0.3

0.8

0.3∗∗∗

0.2∗∗∗

0.0

0.3

0.3

0.0

4.3

0.7

0.1∗∗∗

0.3∗∗∗

0.1∗∗∗

0.2

0.3

0.1

0.9

3.8

0.9

0.2∗∗∗

0.2∗∗∗

0.0

0.3

0.3

0.0

3.6

0.9

4.1

0.9

0.4∗∗∗

0.5∗∗∗

0.1∗∗∗

0.4

0.5

0.1

3.4

0.8

3.6

0.9

0.0

0.2∗∗∗

0.2∗∗∗

0.0

0.3

0.3

FT = full time; PT = part time; Exec = executive.
differences may differ by .1 from displayed means because of rounding.
∗∗∗ p