A Future For Business Education
The EFMD network includes nearly 900 institutional members and reaches over 25,000 management development professionals across 88 countries worldwide. In part, this is because exploring adequately a single overarching and fungible argument and its implications requires space, time frame and method that are poorly aligned to elite journal publications. With few exceptions, such as the resource and capabilities-based view, the record of management scholars in coming up with new theory is lamentable. There are, for sure, very many good ideas and advances but no new overarching general theories like those proposed by the aforementioned economics scholars. During the years of “irrational exuberance” business scholars like many economists, have gradually come to believe in the self-correcting properties of markets and the ability of a business to help address societal problems.
I will close with a call to bring back the good old book. In my area virtually most key ideas emanated from a handful of classic books on economics by Joe Bain, Edith Penrose, Cyert and March, Nelson and Winter, Oliver Williamson and Stephen Hymer. The argument was that the lower sell out price would reduce profit, whilst the lower volume from the single channel strategy was ignored.
And whereas Firestone radically reduced its level of customer service, Goodyear continued to invest in its customer relationships, establishing a basis for future growth. Banc One is another company that was hamstrung by its relationships with employees—in particular, its managers. Growing from humble beginnings, Banc One became the most profitable U.S. bank in the early 1990s, with a market capitalization that topped that of American Express and J.P. Its formula for success was to acquire healthy local banks, retain their incumbent managers, and grant those managers considerable autonomy in running their businesses. These “uncommon partnerships,” as Banc One dubbed the relationships, motivated the managers to act as entrepreneurs and respond to local market conditions.
But over time, Polaroid’s devotion to excellent research turned into a disdain for other business activities. Marketing and finance, in particular, were considered relatively unimportant so long as the company had cutting-edge technology. Valuing technological breakthroughs above all else, Polaroid’s managers continued to invest heavily in research without adequately considering how customers would respond. Today the company is worth only one-third of what a bidder offered in an acquisition attempt in 1989. Because it grows out of success, it often spreads unnoticed in corporations.
The cookie collects information such as IP addresses, time spent on website and page requests for the visits.This collected information is used for retargeting of multiple users routing from the same IP address. Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features. Law and economics have found applications in the corporate governance debate but here, too, business scholars mostly followed the economists’ emphasis on shareholder value. The current power of big tech is much more than market power – it has morphed into political power. It is important that power becomes a major subject in business curricula –hence politics and geopolitics as well.