Manajemen | Fakultas Ekonomi Universitas Maritim Raja Ali Haji joeb.82.6.307-312

Journal of Education for Business

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

Traditional Master of Business Administration
(MBA) Versus the MBA With Specialization: A
Disconnection Between What Business Schools
Offer and What Employers Seek
Pola B. Gupta , Paula M. Saunders & Jeremy Smith
To cite this article: Pola B. Gupta , Paula M. Saunders & Jeremy Smith (2007) Traditional
Master of Business Administration (MBA) Versus the MBA With Specialization: A Disconnection
Between What Business Schools Offer and What Employers Seek, Journal of Education for
Business, 82:6, 307-312, DOI: 10.3200/JOEB.82.6.307-312
To link to this article: http://dx.doi.org/10.3200/JOEB.82.6.307-312

Published online: 07 Aug 2010.

Submit your article to this journal

Article views: 114

View related articles

Citing articles: 3 View citing articles

Full Terms & Conditions of access and use can be found at
http://www.tandfonline.com/action/journalInformation?journalCode=vjeb20
Download by: [Universitas Maritim Raja Ali Haji]

Date: 11 January 2016, At: 23:29

Downloaded by [Universitas Maritim Raja Ali Haji] at 23:29 11 January 2016

Traditional฀Master฀of฀Business฀
Administration฀(MBA)฀Versus฀the฀MBA฀฀
With฀Specialization:฀A฀Disconnection฀
Between฀What฀Business฀Schools฀Offer฀฀
and฀What฀Employers฀Seek฀
POLA฀B.฀GUPTA฀ ฀
฀
PAULA฀M.฀SAUNDERS฀฀ ฀

WRIGHT฀STATE฀UNIVERSITY

฀
฀

ABSTRACT. A฀trend฀in฀master฀of฀business฀administration฀(MBA)฀programs฀has฀

ABSTRACT.

been฀to฀offer฀more฀specializations฀beyond฀
the฀traditional฀broad฀MBA.฀In฀this฀article,฀
the฀authors฀explore฀the฀recruitment฀practices฀of฀business฀and฀the฀curricula฀of฀MBA฀
programs฀comparing฀general฀MBA฀degrees฀
with฀MBA฀degrees฀with฀specialization.฀
The฀authors฀empirically฀examine฀whether฀
employers฀prefer฀a฀general฀MBA฀or฀an฀
MBA฀with฀a฀specialization.฀On฀the฀basis฀of฀
an฀analysis฀of฀758฀employment฀advertisements฀and฀27฀MBA฀programs฀being฀offered฀
by฀universities,฀the฀authors฀found฀a฀disconnection฀between฀what฀employers฀appeared฀
to฀want฀and฀what฀business฀schools฀offered.฀

Keywords:฀employers’฀preferences,฀general฀
MBA,฀master฀of฀business฀administration฀
programs,฀specialization
Copyright฀©฀2007฀Heldref฀Publications

฀

JEREMY฀SMITH฀
QBASE฀DATA฀SERVICES฀

I

n฀academic฀terms,฀the฀master฀of฀business฀ administration฀ (MBA),฀ developed฀ in฀ the฀ United฀ States฀ in฀ 1908,฀ has฀
mostly฀been฀a฀success฀story฀(Pfeffer฀&฀
Fong,฀2002).฀Although฀researchers฀have฀
frequently฀criticized฀the฀value฀of฀the฀current฀MBA฀programs฀(Bennis฀&฀O’Toole,฀
2005;฀ Elliott,฀ Goodwin,฀ &฀ Goodwin,฀
1994),฀ many฀ educators,฀ employers,฀
and฀ students฀ agree฀ with฀ Gavin฀ Staude,฀
Director฀ of฀ Rhodes฀ Investec฀ Business฀

School฀(Jordan,฀2004):
The฀competitive฀advantage฀of฀an฀MBA฀is฀
that฀ it฀ provides฀ managers฀ with฀ a฀ holistic฀
perspective฀of฀management฀and฀business฀
and฀it฀equips฀them฀to฀assist฀their฀organizations฀ to฀ deliver฀ superior฀ business฀ results฀
by฀ immersing฀ them฀ in฀ the฀ ‘enabler’฀ and฀
cutting-edge฀disciplines.฀(p.฀40)

Many฀ students฀ say฀ that฀ the฀ opportunities฀ for฀ increased฀ salaries฀ and฀ career฀
advancement฀are฀the฀reasons฀for฀pursuing฀an฀MBA฀degree.฀They฀view฀an฀MBA฀฀
as฀the฀quickest฀path฀to฀the฀senior฀levels฀
of฀management—so฀much฀so฀that฀many฀
of฀ them฀ view฀ its฀ placement฀ function฀
as฀ more฀ important฀ than฀ its฀ knowledge฀
function฀(Hunt฀&฀Speck,฀1986).฀In฀addition,฀MBA฀students฀can฀expect฀their฀salary฀ to฀ increase฀ by฀ approximately฀ 18%฀
upon฀ graduation฀ and฀ 53%฀ 3–5฀ years฀
after฀graduation,฀according฀to฀the฀2005฀
Careers฀ Survey฀ by฀ the฀ Association฀ of฀
MBAs฀ (Purcell,฀ 2005).฀ Another฀ recent฀
survey฀ of฀ the฀ MBA฀ accredited฀ schools฀

by฀ the฀ Association฀ to฀ Advance฀ Collegiate฀ Schools฀ of฀ Business฀ (AACSB)฀
indicated฀that฀an฀MBA฀education฀has฀a฀

positive฀ impact฀ on฀ graduates’฀ employment,฀ income,฀ and฀ job฀ promotions฀ in฀
the฀short฀and฀long฀terms฀(Zhao,฀Truell,฀
Alexander,฀&฀Hill,฀2006).
Graduate฀ programs฀ in฀ business฀ education฀are฀presently฀at฀crossroads฀as฀the฀
students฀ and฀ faculty฀ are฀ torn฀ between฀
selecting฀ or฀ offering฀ a฀ general฀ MBA฀
program฀ and฀ an฀ MBA฀ with฀ specialization.฀ The฀ existing฀ literature฀ supports฀
both฀ of฀ these฀ options.฀ It฀ is฀ clear฀ that฀
business฀schools฀today฀do,฀in฀fact,฀offer฀
a฀ variety฀ of฀ MBA฀ programs,฀ including฀
variations฀ of฀ the฀ traditional฀ MBA฀ programs฀and฀MBA฀programs฀with฀opportunities฀for฀specialization.
Traditional฀ MBA฀ programs฀ focus฀ on฀
required฀courses฀that฀are฀aimed฀at฀core฀
business฀disciplines,฀with฀no฀specialization฀ in฀ the฀ functional฀ areas.฀ Students฀
often฀ take฀ electives฀ based฀ on฀ a฀ variety฀
of฀ interests,฀ often฀ at฀ any฀ time฀ during฀
their฀ program.฀ MBA฀ programs฀ with฀

specializations฀ have฀ increased฀ over฀ the฀
years฀on฀the฀basis฀of฀the฀belief฀that฀businesses฀need฀people฀who฀have฀a฀more฀indepth฀understanding฀of฀particular฀functions฀ and฀ the฀ tasks฀ that฀ they฀ require.฀
A฀ compromise฀ between฀ the฀ traditional฀
and฀ specialization฀ degrees฀ is฀ the฀ general฀ MBA.฀ The฀ general฀ MBA฀ provides฀
knowledge฀ to฀ students฀ in฀ all฀ the฀ basic฀
business฀ areas฀ and฀ gives฀ students฀ the฀
opportunity฀ to฀ study฀ certain฀ functional฀
areas฀in฀greater฀depth.
The฀business฀community,฀for฀the฀most฀
part,฀seems฀to฀be฀sending฀mixed฀signals฀
(Bennis฀ &฀ O’Toole,฀ 2005).฀ For฀ examJuly/August฀2007฀

307

Downloaded by [Universitas Maritim Raja Ali Haji] at 23:29 11 January 2016

ple,฀companies฀hire฀MBAs฀with฀narrow฀
specialization฀ and฀ then฀ complain฀ that฀
business฀schools฀are฀not฀producing฀individuals฀ who฀ will฀ be฀ able฀ to฀ both฀ lead฀
and฀make฀practical฀decisions.฀

In฀ this฀ study,฀ we฀ analyzed฀ 758฀
employment฀advertisements฀from฀major฀
newspapers฀and฀some฀popular฀Web฀sites฀
to฀ determine฀ if฀ there฀ is฀ any฀ evidence฀
that฀the฀employers฀are฀looking฀for฀candidates฀ with฀ a฀ general฀ MBA฀ degree฀ or฀
an฀MBA฀with฀a฀specialization฀in฀a฀given฀
functional฀ area,฀ such฀ as฀ marketing฀ or฀
accounting.฀In฀addition,฀we฀analyzed฀27฀
MBA฀programs,฀including฀13฀from฀top฀
business฀schools฀in฀the฀United฀States,฀to฀
determine฀the฀presence฀or฀lack฀of฀available฀concentrations฀in฀the฀program.
Literature฀Review
Analysis฀of฀the฀27฀MBA฀programs฀(see฀
Appendix฀A)฀revealed฀the฀MBA฀program฀
structures฀ related฀ to฀ traditional฀ versus฀
specialized฀ curricula,฀ and฀ the฀ literature฀
supports฀their฀existence.฀Hunt฀and฀Speck฀
(1986)฀also฀had฀reviewed฀27฀MBA฀programs฀in฀their฀research฀and฀sorted฀those฀
programs฀into฀five฀similar฀categories:฀(a)฀
general฀broad฀MBA,฀(b)฀MBA฀with฀specialization,฀ (c)฀ general฀ MBA,฀ (d)฀ MBA฀

with฀ specializations,฀ and฀ (e)฀ MBA฀ with฀
numerous฀specialization฀in฀niche฀areas.
The฀General฀MBA฀Program
The฀ general฀ MBA฀ program฀ tends฀ to฀
focus฀on฀core฀subjects฀that฀are฀aimed฀at฀
developing฀ knowledge฀ and฀ skills฀ in฀ all฀
key฀ areas฀ of฀ business.฀ Typically,฀ managers฀ on฀ the฀ way฀ up฀ move฀ from฀ entrylevel฀ specialized฀ jobs฀ to฀ positions฀ with฀
broader฀responsibilities.฀Thus,฀business฀
educators฀ design฀ these฀ general฀ MBA฀
programs฀ to฀ develop฀ general฀ skills฀ and฀
knowledge฀ in฀ management,฀ rather฀ than฀
expertise฀ in฀ specialized฀ areas฀ (Jenkins,฀
Reizenstein,฀ &฀ Rodgers,฀ 1984).฀ This฀
kind฀ of฀ MBA฀ is฀ accepted฀ more฀ by฀
employers฀ who฀ desire฀ general฀ business฀
organization฀and฀communications฀skills฀
over฀ specific฀ functional฀ skills.฀According฀ to฀ Elliott฀ et฀ al.฀ (1994),฀ “U.S.฀ businesses฀ would฀ like฀ to฀ recruit฀ managers฀
who฀are฀more฀broadly฀educated฀in฀business,฀are฀good฀communicators฀and฀team฀
workers,฀ understand฀ the฀ importance฀ of฀
process,฀and฀minimize฀competition฀with฀

fellow฀workers”฀(p.฀56).฀
308฀

Journal฀of฀Education฀for฀Business

For฀these฀employers,฀the฀primary฀purpose฀ of฀ an฀ MBA฀ is฀ to฀ produce฀ managers฀ who฀ understand฀ the฀ entire฀ business฀
rather฀than฀a฀specific฀segment.฀
MBA฀With฀Specializations
Many฀business฀educators฀have฀decided฀
that฀the฀core฀MBA฀curriculum,฀although฀
still฀valuable,฀is฀no฀longer฀enough฀to฀suit฀
the฀needs฀of฀today’s฀employers฀(Bisoux,฀
2005).฀ Bisoux฀ suggests฀ that฀ business฀
schools฀are฀betting฀that฀companies฀will฀
want฀ to฀ hire฀ students฀ who฀ are฀ exposed฀
to฀a฀more฀specialized,฀integrated,฀experiential,฀and฀sequenced฀curricula.฀Some฀
argue฀ that฀ too฀ few฀ details฀ provided฀ in฀
the฀ general฀ MBA฀ programs฀ may฀ not฀
prepare฀ students฀ sufficiently฀ for฀ the฀
business฀world฀(Simon,฀1989).฀According฀ to฀ such฀ critics,฀ the฀ classic฀ general฀

MBA฀ attempts฀ to฀ produce฀ managers฀
who฀ can฀ understand฀ every฀ aspect฀ of฀
the฀business,฀but฀today฀MBA฀graduates฀
will฀ also฀ likely฀ be฀ required฀ to฀ manage฀
specific฀tasks฀in฀a฀technologically฀complex฀environment.฀According฀to฀Mowry฀
(2003),฀ companies฀ want฀ employees฀ to฀
learn฀ specialized฀ skills฀ sets฀ and฀ they฀
will฀ contract฀ with฀ MBA฀ programs฀ to฀
deliver฀them฀on฀site.
Hunt฀ and฀ Speck฀ (1986)฀ found฀ that฀
neither฀ corporate฀ employers฀ nor฀ MBA฀
students฀ preferred฀ the฀ general฀ MBA฀
degree.฀ Of฀ the฀ five฀ possible฀ MBA฀ program฀ types,฀ those฀ with฀ specialization฀
were฀ consistently฀ selected฀ above฀ those฀
without฀ specialization฀ by฀ employers฀
and฀ MBA฀ students.฀ According฀ to฀ the฀
authors,฀ however,฀ these฀ findings฀ did฀
not฀ conflict฀ with฀ the฀ need฀ for฀ general฀
knowledge.

most฀ respected฀ business฀ schools฀ in฀ the฀
United฀ States฀ and฀ Canada฀ are฀ getting฀
rid฀ of฀ the฀ specialization฀ trend.฀ Gerdes฀
adds฀that฀some฀schools฀are฀compromising฀ by฀ offering฀ management฀ specializations฀ that฀ have฀ broad฀ applications฀
such฀as฀leadership.฀Many฀educators฀are฀
also฀thinking฀that฀specialization฀is฀a฀fad฀
that฀ is฀ contrary฀ to฀ the฀ purpose฀ of฀ the฀
general฀MBA.฀They฀argue฀that฀business฀
schools฀ need฀ to฀ provide฀ students฀ with฀
well-rounded฀capabilities฀because฀most฀
companies฀still฀look฀for฀the฀criteria฀they฀
did฀30฀years฀ago฀(Gerdes).
Perhaps฀ in฀ an฀ ideal฀ world,฀ business฀
schools฀ should฀ prepare฀ students฀ with฀
both฀ a฀ generalist฀ background฀ and฀ specific฀ knowledge.฀ Given฀ the฀ dilemma,฀
some฀ business฀ schools฀ offer฀ a฀ combination฀ of฀ general฀ MBA฀ programs฀ and฀
specializations.฀ Jenkins฀ et฀ al.฀ (1984)฀
reported฀ that฀ most฀ schools฀ divided฀ the฀
MBA฀curriculum฀so฀that฀students฀could฀
choose฀an฀area฀of฀specialization฀to฀complement฀their฀training฀as฀generalists.
Some฀ universities฀ give฀ students฀ an฀
option฀to฀choose฀between฀a฀general฀MBA฀
and฀a฀general฀MBA฀with฀a฀specialization.฀
For฀ example,฀ students฀ could฀ get฀ a฀ general฀MBA฀in฀which฀they฀would฀complete฀
the฀core฀courses฀required฀to฀graduate฀and฀
then฀take฀additional฀electives฀or฀select฀a฀
specialization฀ in฀ a฀ functional฀ area.฀ Students฀ may฀ also฀ have฀ a฀ choice฀ of฀ how฀
general฀ or฀ specific฀ they฀ want฀ the฀ program฀to฀be.฀This฀seems฀to฀be฀a฀low-risk฀
strategy฀for฀the฀business฀schools฀because฀
they฀ can฀ cater฀ to฀ the฀ needs฀ of฀ two฀ segments฀of฀the฀market:฀฀(a)฀companies฀that฀
seek฀ general฀ MBAs฀ and฀ (b)฀ others฀ who฀
want฀MBAs฀with฀specializations.

General฀MBA฀and฀Specialization฀
Options

MBA฀With฀Numerous฀
Specializations฀In฀Niche฀Areas

There฀ are,฀ however,฀ concerns฀ about฀
focusing฀too฀much฀on฀MBA฀specializations.฀ Focusing฀ on฀ a฀ specialty฀ could฀
gloss฀over฀the฀basics฀such฀as฀marketing฀
and฀ finance.฀ There฀ is฀ a฀ risk฀ of฀ alienating฀ big฀ recruiters,฀ such฀ as฀ consulting฀
companies฀that฀prefer฀the฀general฀MBA.฀
A฀more฀narrow฀appeal฀could฀also฀result฀
in฀ a฀ smaller฀ pool฀ of฀ applicants,฀ a฀ less฀
diverse฀student฀body,฀a฀diminished฀educational฀ experience,฀ and฀ limited฀ career฀
choices฀ for฀ graduates’฀ (Gerdes,฀ 2005).฀
According฀to฀Gray฀(2000),฀some฀of฀the฀

Another฀ MBA฀ program฀ structure฀ is฀
one฀ in฀ which฀ business฀ schools฀ offer฀
MBA฀degrees฀in฀numerous฀niche฀areas.฀
According฀to฀Elliott฀et฀al.฀(1994),฀narrow฀
specialization฀ may฀ be฀ more฀ in฀ demand฀
as฀ businesses฀ lean฀ toward฀ demand฀ for฀
the฀informed฀generalist.
Like฀many฀other฀universities,฀the฀University฀ of฀ Wisconsin-Madison’s฀ School฀
of฀Business฀had฀seen฀a฀drop฀in฀application฀ for฀ full฀ time฀ MBA฀ programs.฀ Its฀
full฀ time฀ applications฀ dropped฀ 30%฀ in฀
3฀ years,฀ and฀ the฀ university฀ authorities฀

Downloaded by [Universitas Maritim Raja Ali Haji] at 23:29 11 January 2016

felt฀ that฀ the฀ situation฀ was฀ likely฀ to฀ get฀
worse฀ (Gerdes,฀ 2005).฀ The฀ authorities฀
responded฀by฀doing฀something฀that฀many฀
more฀schools฀are฀doing฀these฀days—they฀
added฀numerous฀specializations.฀In฀2004,฀
the฀university฀replaced฀the฀general฀MBA฀
with฀13฀distinct฀specializations฀in฀everything฀from฀arts฀administration฀to฀applied฀
corporate฀finance.฀Students฀choose฀a฀specialization฀ before฀ they฀ take฀ their฀ first฀
class,฀ and฀ then฀ they฀ will฀ work฀ with฀ a฀
team฀ of฀ students—each฀ with฀ a฀ different฀
specialization—for฀ the฀ duration฀ of฀ the฀
program฀ (Bisoux,฀ 2005).฀ As฀ a฀ strategy,฀
the฀specialization฀seems฀to฀be฀working฀at฀
schools฀like฀the฀University฀of฀WisconsinMadison฀and฀Boston฀University.฀Student฀
satisfaction฀is฀up,฀decline฀in฀applications฀
has฀ stopped,฀ and฀ higher฀ rankings฀ ultimately฀may฀be฀the฀result฀(Gerdes).฀That฀
is฀probably฀why฀many฀schools฀now฀focus฀
programs฀on฀a฀few฀well-chosen฀specialties฀and฀choose฀to฀build฀their฀specialties฀
around฀specific฀industries.
Many฀ educators฀ believe฀ that฀ today’s฀
competitive฀ environment฀ may฀ require฀
an฀ even฀ more฀ specialized฀ program฀ that฀
focuses฀ on฀ a฀ single฀ industry฀ or฀ function฀ (Gerdes,฀ 2005).฀ Creating฀ specialized฀ MBA฀ programs,฀ like฀ health฀ care฀
or฀project฀management,฀allows฀mid-tier฀
schools฀ to฀ stand฀ out.฀ Other฀ large฀ universities฀ offer฀ similar฀ programs.฀ Stanford฀ University฀ has฀ established฀ a฀ new฀
Institute฀ of฀ Design฀ that฀ teaches฀ design฀
thinking฀and฀strategy฀to฀business,฀engineering,฀and฀design฀students.฀The฀Institute฀of฀Design฀at฀the฀Illinois฀Institute฀of฀
Technology,฀another฀top฀D-school฀in฀the฀
United฀ States฀ sends฀ its฀ gradutes฀ to฀ big฀
businesses฀ (Merritt฀ &฀ Lavelle,฀ 2005).฀
Gray฀ (2000)฀ said฀ that฀ business฀ schools฀
that฀are฀not฀elite฀schools฀or฀do฀not฀offer฀
a฀unique฀curriculum฀might฀be฀in฀serious฀
danger฀of฀going฀out฀of฀business.
Employers’฀Perspectives฀of฀MBAs
Employers฀ seem฀ to฀ have฀ varying฀
preferences.฀Some฀appear฀to฀like฀a฀wellrounded฀education,฀others฀prefer฀a฀specialized฀one,฀and฀some฀employers฀seem฀
to฀ want฀ both.฀ According฀ to฀ Hunt฀ and฀
Speck฀(1986),฀some฀employers฀express฀
support฀ for฀ a฀ broader฀ orientation฀ in฀
training฀for฀careers฀in฀business฀when฀in฀
actuality฀ they฀ have฀ a฀ strong฀ desire฀ for฀
technical฀competence.
฀

There฀ are฀ many฀ reasons฀ why฀ the฀
MBA฀ maintains฀ its฀ leading฀ position฀ in฀
executive฀qualification฀options฀and฀why฀
senior฀managers฀still฀choose฀to฀invest฀in฀
the฀qualification.฀Employers฀continue฀to฀
value฀ the฀ MBA฀ as฀ a฀ guarantee฀ of฀ general฀business฀skills฀and฀knowledge.฀Purcell฀(2005)฀reports฀on฀the฀attitude฀of฀Sir฀
Martin฀Sorrell,฀head฀of฀Wire฀and฀Plastics฀
Products฀(WPP),฀the฀global฀advertising฀
giant,฀ who฀ said฀ that,฀ “faced฀ with฀ two฀
candidates฀of฀equal฀caliber,฀if฀one฀possesses฀an฀MBA,฀I฀would฀always฀employ฀
the฀ candidate฀ with฀ the฀ MBA”฀ (p.฀ 23).฀
The฀problem฀for฀employers,฀businesses,฀
and฀students฀is฀determining฀the฀best฀curriculum฀ structure฀ at฀ any฀ point฀ in฀ time฀
that฀ offers฀ the฀ greatest฀ benefits.฀ One฀
of฀ the฀ big฀ curriculum฀ questions฀ today฀
is฀related฀to฀the฀issue฀of฀the฀traditional฀
MBA฀versus฀the฀specialized฀MBA.
Purpose฀of฀the฀Study
The฀ traditional฀ MBA฀ degree฀ emphasizes฀ a฀ general฀ education,฀ but฀ results฀
of฀ some฀ studies฀ (e.g.,฀ Hunt฀ &฀ Speck,฀
1986)฀suggest฀that฀employers฀want฀specialization.฀During฀the฀past฀9฀years,฀we฀
have฀found฀no฀academic฀study฀to฀determine฀if฀there฀is฀a฀different฀trend฀in฀terms฀
of฀employers’฀preferences฀for฀a฀general฀
MBA฀ degree฀ or฀ MBA฀ with฀ specializations.฀ We฀ attempt฀ to฀ address฀ this฀ issue฀
by฀performing฀a฀content฀analysis฀of฀758฀
advertisements฀ from฀ major฀ newspapers฀
in฀ the฀ 15฀ cities฀ in฀ the฀ United฀ States฀ as฀
well฀as฀analysis฀of฀popular฀employment฀
Web฀sites.
Research฀Questions
We฀ investigated฀ the฀ following:฀ (a)฀
Do฀employers฀prefer฀a฀traditional฀MBA฀
degree฀ or฀ an฀ MBA฀ with฀ a฀ specialization?฀(b)฀Do฀the฀employers’฀preferences฀
vary฀across฀type฀of฀industry?฀(c)฀Is฀the฀
level฀ of฀ position฀ (upper,฀ middle,฀ and฀
lower)฀ advertised฀ related฀ to฀ employers’฀
preferences฀for฀a฀general฀or฀specialized฀
MBA?฀ (d)฀ Do฀ employers฀ prefer฀ a฀ general฀ MBA฀ with฀ a฀ specific฀ major฀ in฀ the฀
undergraduate฀business฀program?
METHOD฀฀
We฀collected฀data฀from฀758฀employment฀advertisements฀in฀which฀an฀MBA฀
degree฀ was฀ specified฀ as฀ a฀ preferred฀ or฀

required฀ qualification.฀ The฀ advertisements฀ were฀ obtained฀ from฀ the฀ classified฀sections฀of฀major฀newspapers฀(e.g.,฀
Chicago฀ Sun-Times,฀ New฀ York฀ Times)฀
and฀the฀two฀nationally฀recognized฀Web฀
sites฀ (monster.com฀ and฀ careerbuilder.
com)฀ from฀ 15฀ most฀ populated฀ cities฀ in฀
the฀United฀States฀(see฀Appendix฀B).฀The฀
data฀ collected฀ included฀ job฀ title,฀ city,฀
state,฀ number฀ of฀ years฀ of฀ experience฀
required,฀ degree฀ requirement,฀ undergraduate฀ concentration,฀ MBA฀ concentration,฀ and฀ if฀ the฀ MBA฀ was฀ preferred฀
or฀required.฀฀฀
Salaries฀offered฀in฀the฀selected฀advertisements฀ ranged฀ from฀ under฀ $50,000฀
to฀over฀$200,000฀with฀a฀mean฀salary฀of฀
$83,393.฀The฀experience฀preferred฀in฀the฀
advertisements฀ranged฀from฀under฀1฀year฀
to฀as฀high฀as฀over฀15฀years฀with฀a฀mean฀
experience฀ of฀ 5.5฀ years.฀ Job฀ postings฀
represented฀ 9฀ different฀ industries฀ with฀
the฀top฀3฀industries฀being฀finance,฀insurance฀ and฀ banking฀ (38.8%),฀ manufacturing฀(12.9%),฀and฀health฀care฀(11%).
We฀ selected฀ 27฀ universities฀ to฀ see฀
what฀ specializations฀ they฀ offered,฀
including฀the฀top฀13฀MBA฀programs฀in฀
the฀ United฀ States.฀ The฀ schools฀ represented฀in฀our฀survey฀offered฀an฀average฀
of฀ nine฀ specializations฀ per฀ school.฀ The฀
range฀of฀specialization฀was฀from฀6–18.฀
The฀ four฀ most฀ common฀ specializations฀
that฀฀nearly฀all฀of฀the฀programs฀offered฀
were฀ marketing,฀ finance,฀ accounting,฀
and฀management.฀Other฀common฀MBA฀
concentrations฀ included฀ management฀
information฀ systems,฀ human฀ resources,฀
international฀ business,฀ entrepreneurship,฀ and฀ operations฀ management.฀ The฀
universities฀ also฀ offered฀ a฀ total฀ of฀ 85฀
niche฀ specializations฀ (e.g.,฀ health-care,฀
project฀ management,฀ innovation฀ and฀
change,฀creativity).฀
RESULTS
We฀ performed฀ content฀ analysis฀ of฀
758฀advertisements฀in฀which฀employers฀
mentioned฀ MBA฀ as฀ one฀ of฀ the฀ qualifications฀ for฀ the฀ advertised฀ position.฀
Approximately฀ 95%฀ of฀ the฀ advertisements฀specified฀that฀the฀MBA฀was฀preferred,฀which฀meant฀only฀5%฀of฀the฀positions฀actually฀required฀an฀MBA฀degree.฀
The฀range฀of฀experience฀desired฀for฀the฀
advertised฀ positions฀ varied฀ from฀ 1–15฀
years.฀ With฀ respect฀ to฀ the฀ requirement฀
July/August฀2007฀

309

Downloaded by [Universitas Maritim Raja Ali Haji] at 23:29 11 January 2016

of฀a฀specialization฀in฀the฀MBA฀program,฀
96%฀ of฀ positions฀ required฀ or฀ preferred฀
a฀ general฀ MBA฀ and฀ only฀ 4%฀ of฀ them฀
asked฀ for฀ a฀ specialization.฀ Out฀ of฀ the฀
4%฀that฀required฀a฀specialization฀in฀the฀
MBA,฀the฀most฀commonly฀sought฀areas฀
were฀ accounting฀ and฀ finance,฀ which฀
accounted฀for฀50%฀of฀all฀the฀specializations฀specified฀in฀the฀advertisements.
Even฀ though฀ only฀ 4%฀ of฀ the฀ positions฀ advertised฀ required฀ an฀ MBA฀
degree฀ with฀ a฀ specific฀ specialization,฀
nearly฀ 35%฀ of฀ advertisements฀ required฀
a฀specific฀major฀area฀in฀the฀undergraduate฀program.฀The฀results฀indicate฀that฀a฀
large฀number฀of฀advertised฀positions฀did฀
not฀require฀a฀specialization฀in฀the฀MBA฀
program฀at฀all.฀However,฀where฀employers฀ desired฀ special฀ skills฀ for฀ the฀ positions,฀ the฀ employers฀ asked฀ for฀ either฀ a฀
specialization฀ in฀ the฀ MBA฀ program,฀ or฀
a฀particular฀major฀in฀the฀undergraduate฀
program.
To฀ find฀ out฀ if฀ the฀ employers’฀ desire฀
for฀ an฀ MBA฀ with฀ specialization฀ and฀ a฀
general฀ MBA฀ degree฀ vary฀ across฀ various฀types฀of฀industries,฀we฀performed฀a฀
cross฀tabulation฀between฀CHOICE฀(specialization฀ or฀ general฀ MBA)฀ variable฀

and฀INDUSTRY฀TYPE.฀We฀determined฀
INDUSTRY฀ TYPE฀ by฀ classifying฀ the฀
companies฀that฀advertised฀758฀positions฀
into฀ eight฀ North฀ American฀ Industry฀
Classification฀System฀(NAICS)฀groups:฀
manufacturing,฀ retail฀ and฀ wholesale,฀
information฀industry,฀finance,฀insurance฀
and฀ banking,฀ real฀ estate,฀ educational฀
services,฀ and฀ health฀ care.฀ The฀ results฀
from฀the฀cross฀tabulation฀are฀presented฀
in฀Table฀1.฀We฀conducted฀a฀Chi-square฀
test฀to฀determine฀if฀there฀is฀any฀association฀between฀CHOICE฀and฀INDUSTRY฀
TYPE฀variables.฀The฀Chi-square฀statistic฀was฀not฀significant,฀χ2(8,฀N฀=฀721)฀=฀
14.14,฀ p฀ =฀ .078,฀ at฀ α฀ =฀ 5%,฀ indicating฀
no฀ relationship฀ between฀ CHOICE฀ and฀
INDUSTRY฀TYPE.฀
We฀ also฀ performed฀ an฀ analysis฀ to฀
determine฀if฀the฀LEVEL฀of฀the฀position฀
advertised฀ was฀ related฀ to฀ a฀ general฀ or฀
specialized฀ MBA฀ degree.฀ On฀ the฀ basis฀
of฀the฀title฀of฀the฀position฀in฀the฀advertisements,฀all฀of฀the฀758฀advertised฀positions฀were฀classified฀into฀three฀levels฀of฀
management฀(upper,฀middle,฀and฀lower)฀
by฀two฀of฀the฀three฀authors฀of฀this฀study.฀
The฀authors฀came฀up฀with฀a฀similar฀classification,฀except฀for฀a฀few฀cases,฀which฀

TABLE฀1.฀Cross฀Tabulation฀of฀Choice฀of฀Master฀of฀Business฀฀
Administration฀(MBA)฀Type฀Versus฀Type฀of฀Industry฀
฀ ฀
Type฀of฀industry฀

฀

Conclusions

Choice฀of฀MBA฀type฀(%)
General฀MBA฀ MBA฀with฀concentation

Manufacturing฀
Retail฀or฀wholesale฀
Information฀(e.g.,฀publishing,฀broadcasting)฀
Finance,฀insurance,฀banking฀
Real฀estate฀
Professional,฀scientific,฀and฀technical฀services฀
Educational฀services฀
Health฀care฀

97.8฀
90.0฀
84.6฀
95.7฀
100฀
93.3฀
93.3฀
97.5฀

2.2
10
15.4
4.3
0
6.7
6.7
2.5

Note.฀χ2(8,฀N฀=฀721)฀=฀14.14,฀p฀=฀.078.

TABLE฀2.฀Cross฀Tabulation฀of฀Choice฀of฀MBA฀Type฀Versus฀Level฀of฀฀
Managers฀
฀
Choice฀of฀MBA฀
General฀MBA฀
MBA฀with฀a฀concentration฀
Note.฀χ2(2,฀N฀=฀758)฀=฀2.45,฀p฀=฀0.29.

310฀

Journal฀of฀Education฀for฀Business

Level฀of฀managers฀(%)
Upper฀level฀ Middle฀level฀ Entry฀level
98.1฀
1.9฀

96฀
4฀

were฀later฀resolved.฀The฀cross฀tabulation฀
between฀LEVEL฀and฀CHOICE฀revealed฀
no฀ significant฀ relationship฀ between฀ the฀
two฀ variables฀ because฀ the฀ Chi-square฀
statistic฀ was฀ not฀ significant฀ at฀ α฀ =฀ 5%฀
(see฀Table฀2).฀These฀results฀suggest฀that฀
the฀ desire฀ for฀ a฀ general฀ MBA฀ or฀ one฀
with฀ specialization฀ is฀ independent฀ of฀
the฀level฀of฀position฀advertised.฀We฀then฀
conclude฀that฀irrespective฀of฀the฀level฀of฀
position฀ advertised,฀ an฀ overwhelming฀
majority฀of฀the฀employers฀did฀not฀prefer฀
an฀MBA฀with฀a฀specialization.
The฀ preceding฀ analysis฀ of฀ 758฀
employment฀advertisements฀in฀15฀large฀
cities฀ suggests฀ that฀ an฀ overwhelming฀
number฀of฀employers฀prefer฀or฀require฀
only฀a฀general฀MBA฀degree.฀The฀level฀
of฀ position฀ advertised฀ or฀ the฀ industry฀ type฀ to฀ which฀ they฀ belonged฀ was฀
not฀ related฀ to฀ the฀ choice฀ of฀ a฀ general฀
MBA฀ or฀ an฀ MBA฀ with฀ specialization.฀
In฀ advertisements฀ in฀ which฀ skills฀ in฀ a฀
particular฀field฀were฀required,฀employers฀ requested฀ a฀ specific฀ major฀ in฀ the฀
undergraduate฀ degree฀ (35%฀ of฀ positions฀ in฀ our฀ study)฀ and,฀ in฀ only฀ a฀ few฀
cases,฀asked฀for฀a฀specialization฀in฀the฀
MBA฀ degree฀ (4%฀ of฀ positions฀ in฀ our฀
study).

95.1
3.8

On฀the฀basis฀of฀the฀analysis฀of฀the฀top฀
13฀MBA฀programs฀in฀the฀United฀States,฀
we฀ found฀ that฀ all฀ of฀ the฀ universities฀฀
offered฀ specializations.฀ The฀ range฀ of฀
number฀ of฀ specialization฀ across฀ these฀
schools฀ varied฀ from฀ 6–18฀ .฀ However,฀
the฀ content฀ analysis฀ of฀ advertisements฀
indicated฀ that฀ the฀ vast฀ majority฀ of฀
employers฀ do฀ not฀ care฀ about฀ the฀ specializations฀in฀the฀MBA฀degree,฀and฀yet,฀
schools฀ keep฀ offering฀ more฀ and฀ more฀
niche฀programs.
If฀ skills฀ in฀ a฀ functional฀ area฀ were฀
required฀for฀the฀advertised฀position,฀the฀
employers฀ usually฀ required฀ a฀ specific฀
major฀in฀the฀undergraduate฀degree.฀For฀
example,฀in฀this฀study,฀35%฀of฀the฀advertisements฀ specified฀ that฀ the฀ candidate฀
must฀ have฀ a฀ particular฀ major฀ in฀ their฀
undergraduate฀degree฀for฀the฀advertised฀
position.
In฀ conclusion,฀ we฀ found฀ a฀ disconnection฀ between฀ what฀ MBA฀ programs฀
offer฀ and฀ the฀ employers’฀ needs.฀ There฀
are฀ several฀ possible฀ alternative฀ expla-

Downloaded by [Universitas Maritim Raja Ali Haji] at 23:29 11 January 2016

nations฀ to฀ explain฀ this฀ disconnection.฀
First,฀ for฀ many฀ decades฀ the฀ offers฀ of฀
specializations฀ in฀ MBA฀ programs฀ have฀
increased.฀ For฀ universities,฀ it฀ may฀ be฀
a฀ high-risk฀ strategy฀ not฀ to฀ offer฀ specializations฀because฀many฀schools฀offer฀
them.฀The฀risk฀is฀any฀drop฀in฀enrollment฀
that฀can฀wrongly฀be฀attributed฀to฀lack฀of฀
specializations฀in฀the฀MBA฀program.
Second,฀ even฀ if฀ employers฀ do฀ not฀
care฀for฀specialization,฀students฀may฀still฀
want฀ them.฀ We฀ conducted฀ an฀ informal฀
study฀ of฀ 27฀ prospective฀ MBA฀ students฀
enrolled฀in฀prerequisite฀courses฀required฀
for฀ admission฀ into฀ the฀ MBA฀ program,฀
and฀ approximately฀ 40%฀ of฀ them฀ said฀
concentrations฀were฀somewhat฀important฀
to฀them.฀Ninety฀percent฀said฀they฀would฀
choose฀ a฀ concentration฀ if฀ it฀ were฀ available.฀There฀are฀many฀students฀who฀enter฀
the฀ MBA฀ programs฀ from฀ backgrounds฀
other฀ than฀ business฀ (e.g.,฀ engineering,฀
psychology).฀A฀ specialized฀ MBA฀ might฀
be฀more฀attractive฀for฀someone฀who฀had฀
a฀ substantive฀ background฀ in฀ a฀ major฀
other฀than฀business฀at฀the฀undergraduate฀
level.฀Third,฀employers฀may฀avoid฀specifying฀ a฀ specialization฀ in฀ the฀ advertisement฀because฀they฀do฀not฀want฀to฀narrow฀
the฀pool฀of฀applicants.
Until฀ researchers฀ find฀ the฀ probable฀
reasons฀for฀the฀disconnection฀stated฀฀earlier,฀ universities฀ may฀ pursue฀ a฀ low-risk฀
strategy฀by฀offering฀both฀a฀general฀MBA฀
and฀an฀MBA฀with฀specializations฀to฀satisfy฀the฀needs฀of฀both฀employers฀and฀students.฀A฀general฀broad฀MBA฀covers฀the฀
basics฀and฀provides฀the฀know฀how฀in฀specific฀job฀functions.฀Even฀more฀attractive฀
may฀be฀a฀broad฀MBA฀curriculum฀infused฀
with฀multidisciplinary,฀practical,฀and฀ethical฀issues฀that฀teach฀decision฀making฀to฀
address฀the฀complex฀challenges฀business฀
leaders฀face.฀Allowing฀students฀to฀tailor฀

฀

elective฀ classes฀ could฀ be฀ another฀ way฀
to฀both฀cover฀core฀functions฀and฀enable฀
students฀to฀gain฀skills฀and฀knowledge฀in฀
a฀more฀specific฀area.฀
Offering฀ specializations฀ may฀ benefit฀
some฀ faculty.฀ Faculty฀ members฀ may฀
prefer฀ to฀ teach฀ courses฀ in฀ the฀ specialized฀ areas฀ if฀ they฀ are฀ relevant฀ to฀ their฀
research฀interests.฀This฀type฀of฀personal฀
satisfaction฀ could฀ lead฀ to฀ high฀ quality฀
of฀ instruction฀ and฀ more฀ enthused฀ students.฀Disadvantages฀may฀include฀finding฀the฀right฀faculty฀to฀teach฀specialized฀
courses.฀There฀may฀not฀be฀qualified฀faculty฀to฀teach฀the฀classes฀needed฀for฀the฀
specialization.฀This฀may฀necessitate฀hiring฀ new฀ faculty,฀ which฀ is฀ an฀ expensive฀
option.฀ Offering฀ many฀ specializations฀
also฀ may฀ lead฀ to฀ lower฀ enrollment฀ in฀
some฀ classes฀ leading฀ to฀ inefficient฀ use฀
of฀faculty฀resources.฀
Future฀research฀should฀focus฀on฀surveying฀employers฀to฀understand฀exactly฀
what฀they฀look฀for฀in฀potential฀employees,฀to฀ascertain฀if฀their฀online฀newspaper฀advertisements฀accurately฀state฀what฀
they฀ really฀ want,฀ and฀ to฀ discover฀ their฀
preferences฀ related฀ to฀ MBA฀ concentrations.฀Research฀should฀also฀be฀conducted฀ among฀ MBA฀ students฀ to฀ find฀ their฀
views฀of฀a฀general฀MBA฀versus฀an฀MBA฀
with฀ specializations.฀ It฀ is฀ possible฀ that฀
even฀ if฀ the฀ employers฀ ask฀ for฀ specializations,฀students฀may฀prefer฀specializations฀to฀update฀their฀knowledge฀in฀their฀
functional฀ areas.฀ As฀ suggested฀ above,฀
future฀ research฀ will,฀ hopefully,฀ offer฀ a฀
clear฀explanation฀of฀what฀appears฀to฀be฀
a฀ disconnect฀ between฀ what฀ employers฀
want฀ in฀ an฀ MBA฀ program฀ and฀ what฀
the฀ universities฀ offer.฀ Until฀ then,฀ we฀
believe,฀business฀schools฀should฀continue฀to฀offer฀both฀a฀general฀MBA฀degree฀
and฀specializations.฀

NOTE
Dr.฀ Pola฀ Gupta’s฀ research฀ interests฀ are฀ product฀ placement,฀ Internet฀ marketing,฀ software฀ and฀
music฀piracy,฀international฀marketing,฀and฀public฀
policy฀issues.
Dr.฀ Paula฀ Saunders’s฀ research฀ interests฀ are฀
Internet,฀relationship฀marketing,฀higher฀education฀
and฀service฀quality.
Jeremy฀Smith’s฀research฀interests฀are฀curriculum฀issues฀in฀MBA฀programs.
Correspondence฀concerning฀this฀article฀should฀be฀
addressed฀to฀Dr.฀Pola฀B.฀Gupta,฀Wright฀State฀University,฀ Department฀ of฀ Marketing,฀ 266฀ Rike฀ Hall,฀ Raj฀
Soin฀College฀of฀Business,฀Dayton,฀OH฀45435.฀
E–mail:฀pola.gupta@wright.edu
REFERENCES฀
Bennis,฀W.฀ G.,฀ &฀ O’Toole,฀ J.฀ (2005).฀ How฀ business฀schools฀lost฀their฀way.฀Harvard฀฀
Business฀Review,฀83(5),฀96–104.
Bisoux,฀ T.฀ (2005,฀ May/June)฀ The฀ extreme฀ MBA฀
makeover.฀BizEd,฀pp.฀27–33.
Elliott,฀C.฀J.,฀Goodwin,฀J.฀S.,฀&฀Goodwin,฀J.฀C.฀(1994).฀
MBA฀programs฀and฀business฀needs:฀Is฀there฀a฀mismatch?฀Business฀Horizons,฀37(4),฀55–59.
Gerdes,฀L.฀(2005,฀September฀5).฀B-schools฀with฀a฀
niche.฀Business฀Week,฀3949,฀pp.฀70–72.
Gray,฀ J.฀ (2000).฀ Fit฀ or฀ fad?฀ Canadian฀ Business,฀
73(20),฀72–76.
Hunt,฀S.฀D.,฀&฀Speck,฀P.฀S.฀(1986).฀Specialization฀
and฀the฀MBA:฀Is฀the฀broad฀MBA฀passé?฀California฀Management฀Review,฀29(3),฀159–175.
Jenkins,฀R.฀L.,฀Reizenstein,฀R.฀C.,฀&฀Rodgers,฀F.฀
G.฀(1984).฀Report฀cards฀on฀the฀MBA.฀Harvard฀฀
Business฀Review,฀62(5),฀20–30.฀
Jordan,฀D.฀(2004,฀July฀5).฀The฀competitive฀advantage:฀ Qualification฀ teaches฀ students฀ to฀ think.฀
FinanceWeek,฀p.฀40.
Merritt,฀J.฀&฀Lavelle,฀L.฀(2005,฀August฀1).฀Tomorrow’s฀B-school?฀It฀might฀be฀a฀D-school.฀฀
Business฀Week,฀3945,฀pp.฀80–81.
Mowry,฀M.฀(2003).฀The฀evolving฀MBA.฀Retrieved฀
April฀ 12,฀ from฀ http://www.allbusiness.com฀
/north-merica/united-states-new-hamp shire/1107157-1.html
Pfeffer,฀ J.,฀ &฀ Fong,฀ C.฀ (2002,฀ July฀ 27).฀ The฀
$100,000฀question.฀Economist,฀364,฀฀56–57.฀฀฀
Purcell,฀J.฀(2005,฀August฀17).฀MBA฀brings฀benefits฀
to฀employer฀and฀employee.฀FinanceWeek,฀p.฀27.
Simon฀Jr.,฀J.฀J.฀(1989).฀A฀report฀card฀on฀America’s฀
business฀schools.฀Management฀Review,฀78(12),฀
26–29.
Zhao,฀ J.฀ J.,฀ Truell,฀A.฀ D.,฀Alexander,฀ ฀ M.฀ W.,฀ &฀
Hill,฀I.฀B.฀(2006).฀Less฀Success฀than฀meets฀the฀
eye?฀The฀impact฀of฀master฀of฀business฀administration฀education฀on฀graduates’฀careers.฀Journal฀
of฀Education฀for฀Business,฀81,฀261–268.

July/August฀2007฀

311

Downloaded by [Universitas Maritim Raja Ali Haji] at 23:29 11 January 2016

APPENDIX฀A
List฀of฀27฀Business฀Schools฀Used฀for฀the฀Analysis฀of฀MBA฀Programs
Number฀

College฀or฀university

1฀
2฀
3฀
4฀
5฀
6฀
7฀
8฀
9฀
10฀
11฀
12฀
13฀
14฀
15฀
16฀
17฀
18฀
19฀
20฀
21฀
22฀
23฀
24฀
25฀
26฀
27฀

Bowling฀Green฀State฀University
Case฀Western฀Reserve฀University
Cleveland฀State฀University
Columbia฀University
Cornell฀University
Duke฀University
Harvard฀College
Kent฀State฀University
Massachusetts฀Institute฀of฀Technology
Miami฀University฀of฀Ohio
Northwestern฀University
Ohio฀State฀University
Ohio฀University,฀Athens
Stanford฀University
University฀of฀Akron
University฀of฀California,฀Berkeley
University฀of฀California,฀Los฀Angeles
University฀of฀Chicago
University฀of฀Cincinnati
University฀of฀Dayton
University฀of฀Michigan-Ann฀Arbor
University฀of฀Pennsylvania
University฀of฀Toledo
University฀of฀Virginia
Wright฀State฀University
Xavier฀University
Youngstown฀State฀University

APPENDIX฀B
List฀of฀Selected฀Cities฀for฀the฀
Data฀Collection
Number฀
1฀
2฀
3฀
4฀
5฀
6฀
7฀
8฀
9฀
10฀
11฀
12฀
13฀
14฀
15฀

312฀

Journal฀of฀Education฀for฀Business

City
New฀York฀City,฀New฀York
Los฀Angeles,฀California
Chicago,฀Illinois
Houston,฀Texas
Philadelphia,฀Pennsylvania
Phoenix,฀Arizona
Detroit,฀Michigan
Indianapolis,฀Indiana
Jacksonville,฀Florida
Columbus,฀Ohio
Memphis,฀Tennessee
Denver,฀Colorado
Omaha,฀Nebraska
Cincinnati,฀Ohio
Dayton,฀Ohio