THE ROLE OF BUSINESS SCHOOLS
B usiness schools have a long history of ‘making a difference’ and transformation is at the very heart of what we do. This encompasses transformation of opportunity for our students, transformation of understanding through research and education and transformation of society through, for example, economic development and wealth creation. To varying degrees, all schools aspire to a better future and to actively making it so. However, translating this aspiration to impact can only occur with reference to an external environment and this requires ‘connectedness’. For this, educational institutions need a strong outside-in perspective, counterbalancing the tendency of many towards internal introspection. Indeed, one feature shared by all impactful business schools is their participation in the co-shaping of a vibrant ecosystem, comprised of students, faculty, alumni, industry partners, the academy and the government/regulatory sectors. Active and effective management of a school’s positioning in its ecosystem is what distinguishes great schools from the mediocre. ‘Great’ in this context speaks to the success of a school in achieving its ambitions for transformation, including aspirations around having a meaningful influence on economic development at a regional or national level. How schools influence economic growth The clearest influence of business schools on economic growth stems from their development of future leaders and entrepreneurs. This impact is amplified when a school successfully attracts high-quality students and staff from around the globe. Research-intensive schools also generate second-order economic impact by virtue of the human capital nurtured in their PhD graduates and former faculty, which in turn supports the growth of later‑developing business schools in their region. Thought-leadership activities of faculty impact on economic growth by means of their influence on undergraduate, postgraduate and executive education, as well as management practice, policy and regulatory design. The network of connections formed among a school’s community are also influential. When these links are well-nurtured, they contribute to societal capital and growth potential, by enhancing trust and promoting communication between protagonists in an economy. Such impacts are augmented among schools with international student and alumni cohorts, supporting trade, intercultural understanding and the flow of ideas between countries. Lastly, business schools – particularly those based within universities – can enhance economic development through the creation of cross- disciplinary research and educational programmes. Realising an institution’s potential The opportunities are clear and wide-ranging, but how can a business school turn this potential into realised impact on economic development? A key starting point is to set this as one of the school’s strategic objectives. While this might seem obvious, effective internal alignment on such an objective
Ambition • ISSUE 2 • 2025 41
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