request for strategic advice on business schools in scottish universities:

8/6/2019 REQUEST FOR STRATEGIC ADVICE ON BUSINESS SCHOOLS IN SCOTTISH UNIVERSITIES:

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REQUEST FOR STRATEGIC ADVICE ON BUSINESS

SCHOOLS IN SCOTTISH UNIVERSITIES:a response to the Scottish Funding Council

Summary

a) Scotland has many university business schoolswith a spectrum of different organisational,research, and industry focuses.

b) The great business schools that attractinternational attention focus on strategic businessleadership and with an international and notlocal perspective. Scotland has no school inthis category

c) Conventional performance indicators showStrathclyde Business School to be the leadingschool in Scotland, but there is also awarenessoutside of Scotland of schools in the Universities

of Edinburgh, Glasgow, HeriotWatt, andSt.Andrews.

d) In the 2008 RAE, the proportion of highly ratedwork (4* and 3*) is lower in Scotland thanacross the UK but it shows that muchinternationally excellent research is conductedin Scottish business schools

e) In the FinancialTimes business school listings,the University of Strathclyde is 5th in the UK,

and in terms of on-line MBAs, HeriotWattUniversity is 2nd in the world.

f) The diversity of Scottish schools permits them tomeet the needs of different sub-sectors of theeconomy, but they do not have a strong recordin supplying leadership and skills development

for experienced senior managers, and are notbig enough to compete with the leadinginternational schools.

g) Leading international business schools havecommon features.When in a university theyoperate with entirely devolved budgets, such thatthey are able to reinvest any surplus, and are

schools for business, with very strong corporateand business links, rather than schools that studybusiness.They tend to be demand- rather thansupply-driven, in the classical academic mould.

h) Scottish schools may be able to take aninternational lead in specialist niches where thereis synergy with Scottish economic or researchstrengths.

i) Another mechanism would be to seek partnershipswith top international business schools.

j) The barriers to exploiting current strengths arethe culture gap between business and academia,which prevents them becoming more business

focused; the shortage of high qualityresearch-active staff with international/industryexperience; the lack of major business/industrialcentres in Scotland; competition for lucrative fee

paying postgraduate students; the absence ofentirely devolved budgets and the shortageof research funding.

k) A key prior question that should be asked, iswhether Scotland needs a world-class businessschool, and if so, what focus should it have?

l) If the answer to the first question is a strongyes, such that strategic intervention is justified,a way forward could be to create a competition fora major repayable loan on the basis of a business

plan from a university that is able to addresssome of the key barriers in j).A separate study

would be needed to determine what focus wouldbest serve Scottish business and economic interests.


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The Royal Society of Edinburgh (RSE) is pleased torespond to the Scottish Funding Councils (SFCs)request for advice on business schools in Scottish highereducation institutions (HEIs).This response has been

prepared after widespread consultation (see Appendix 1),with oversight of some of the Societys senior businessfellows, under the direction of the General Secretary,Professor Geoffrey Boulton,and approved by the RSEsectional committee Chair for Business Management,Ms Eileen Mackay.

The key issues for the Scottish Funding Council are:

What is the current status of Scottish business schoolsin an international context?

Would there be added value to Scotland in changing

the status of these schools? What processes could be implemented to produce

Change?

The questions asked by the Funding Council are the boldheadings for each section.

Subject and organisational boundaries

In order to benchmark Scottish business schools on aninternational level, it is important to be clear aboutsubject and organisational boundaries. In the 2001 and2008 Research Assessment Exercises (RAEs), thirteen

Scottish Universities submitted their research to theBusiness and Management Studies panels for assessment1.Of the 13,Aberdeen, Edinburgh, Glasgow, St Andrewsand Stirling submitted their economics research to theEconomics & Econometrics panels. In addition, Glasgow,Glasgow Caledonian, West of Scotland,Robert Gordonand Stirling submitted work in those areas to theAccounting & Finance panel. Dundee submitted itsresearch to the Economics & Econometrics and theAccounting & Finance panels in 2001 and 2008, but notto Business & Management Studies.All large accounting

& finance groups in England and Wales however, wereincluded in Business & Management submissions in 2008.This suggests that business and management research isdefined rather differently in Scotland compared withthe rest of the UK. In the UK, apart from Scotland, mostof the largest accounting and finance groups are seen asfully part of business schools. In Scotland,a significantproportion remain separate, making it difficult to makestaff number comparisons.

A study by Glasgow Business School2 has shown thatthe business school market is also becoming moresegmented,focusing on different motivations and interests,with a global elite group of business schools focusing on

providing management training to senior managers atlarge international firms, while SMEs and public sectororganisation mangers are being serviced by local andregional business schools. In addition to a distinctionbetween graduate schools, and those that also teachundergraduate, the Advanced Institute of Management(AIM)3 categorises UK business schools into four sectors,depending upon their focus on teaching vs research,andscholarly impact vs. organisational impact.

Figure 1: Models and orientations of business activity

Source: Ivory C., Miskell P., Shipton H.,White A., Moelslin K. & Neely A.(2006) UK business schools: historical contexts and future scenarios.

London:Advanced Institute of Management Research.

Social science business schools focus on scholarly impactand research. Schools of critical management again focusmore on scholarly impact but provide more teaching formanagers and aspiring managers. Professional business schoolsfocus more on improving and teaching managementpractice, and finally knowledge economy business schoolsseek to undertake research and application designedto maximise their impact on business organisations.This final group is that of the typical elite business school.Elite business schools engage with senior and highexecutives, giving the business school access to currentpractice and maintaining teaching and research at thecutting edge of business practice.The absence of suchschools may be negative for local economies in failing tobe a conduit for the most recent and applicable advice.

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S t r a t e g y P a p e r

1 The panels in 2001 became sub-panels in 2008, leading to greater institutional flexibility in deciding how to present research outputs.

2 Martin, G. & Robson, I. 2007. Segmented markets for senior executive education and the reputations of business schools. Paper presented to the ManagementEducation Division of the Annual Conference of the Academy of Management, August 6-11th.

3 Ivory C., Miskell P., Shipton H.,White A., Moelslin K. & Neely A. (2006) UK business schools: historical contexts and future scenarios. London:AdvancedInstitute of Management Research.


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Who are the key players in theScottish Business School landscape?

All Scottish Higher Education Institutions (HEIs)maintain a Business School or a Department of Business

or Management.The key players in the Scottish businessschool landscape, on the basis of the 2008 RAE and theFinancialTimes (FT) indices are:

2008 RAE

The top three Scottish HEIs in the 2008 RAE unitsof assessment for Business and Management Studies,Accounting and Finance, and Economics andEconometrics, on the basis of grade point average are:

Business and Management Studies (see table 1)

1 University of Strathclyde UK rank 11;

88.9 Full Time Equivalent (FTE) staff submitted2 University of St.Andrews UK rank 19;

22 FTE staff submitted

3 University of Glasgow UK rank 29;22.2 FTE staff submitted

Accounting and Finance4

1 University of Glasgow UK rank 5;15 FTE submitted

2 University of Stirling UK rank 5;10.8 FTE submitted

3 University of Dundee UK rank 7;19 FTE submitted

Economics and Econometrics

1 University of Glasgow UK rank 11;20.8 FTE submitted

2 University of Edinburgh UK rank 14;18 FTE submitted

3 University of Aberdeen UK rank 18;14 FTE submitted

FT Listings

Four Scottish HEIs appear in the FT Listings for businessschools and business degrees (see Appendix 2):

University of Strathclyde

- MBA degree ranking(41st globally;18th in Europe; 9th in UK)

- European business school ranking(17th in Europe;5th in UK)

- EMBA ranking (80th globally;9th in UK)

- Masters in Management

(32nd globally; 4th in UK)

University of Edinburgh

- EMBA ranking (66th globally; 8th in UK)

- MBA degree ranking(92 globally; 29th in Europe; 16th in UK)

- European business school ranking(36th in Europe;14th in UK)

Heriot Watt University

- On-line MBA (2nd globally; 1st in UK)

Robert Gordon University

- On-line MBA (43rd globally, 18th in UK eMBA;54th globally, 22nd in UK- MBA Oil and GasManagement)

Feedback from outwith Scotland indicates that theStrathclyde and University of Edinburgh business schoolsare most widely known, along with Heriot-WattUniversitys distance learning MBA. Mention is alsomade of the schools in St.Andrews and the Universityof Glasgow.

In terms of scope and scale as well as research quality,Strathclyde Business School comes out as the leadingBusiness School in Scotland. However,each school hasa different history and purpose and sits in very differentinstitutional and industrial contexts.

Please provide a summary of current and developing

policy in Scotland relevant to Business Schools.

Business schools provide a range of activities includingundergraduates/postgraduate business skills training, andresearch that informs government and business policymaking.Although Edinburgh University had a Chair ofAccounting and Business Method in 1919,formal businessschools in Scotland, with the exception of Strathclyde,have come late to the scene and tend to fit uncomfortablyin larger units within their respective institutions, often

being seen as money spinners for the institution.Whereasthis may be important for the economy of the institution,it may be negative for Scotland.The varied structuresacross Scotland tell us more about the managerialprocesses within the respective universities than about theoptimal structure of a Business School. It could be saidthat the larger and older-established the university, thelower on the managerial rungs lies the Business School

and it is significant that Strathclyde, as the most successfulBusiness School,has the longest history of independenceas a Faculty in the university and therefore a relativelystrong control over its own affairs.

4 In Accounting and Finance, around 75% of staff were submitted as part of a Business and Management submission, in the knowledge that such work would becross-referred to the Accounting and Finance sub-panel. In the sub-panel report it noted that such cross-referred submissions were amongst the strongestin the subject.


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In terms of current and developing policy in Scotland,

the Scottish Government and the Hunter Foundation

jointly funded a University Entrepreneurship Programme

in 2007.This has cost 2.65 million over three years, and

involves participation of the universities of Aberdeen,Edinburgh and Strathclyde.The goal of this initiative

was to recruit world class professors to chairs in

entrepreneurship;develop entrepreneurship education at

undergraduate level; support entrepreneurial education

in colleges and in teacher training; develop a one year

master's programme in entrepreneurship and run a

coordinated programme of research into enterprise and

entrepreneurship.

In terms of collaborations, attempts were made in the

1980s and 90s to seek to develop a Scottish business

school that would draw on the expertise of a numberof institutions but, because of the competition between

schools to attract postgraduate student income, the

initiatives did not develop. In economics, however,the

SFC and HEIs have succeeded in establishing a Scottish

Institute for Research in Economics (SIRE) in 2007,

with funding of 21 million over 5 years, and involving

the Universities of Aberdeen, Dundee, Edinburgh,

Glasgow, Heriot-Watt, Napier,West of Scotland,

St.Andrews, Stirling and Strathclyde.

In the commercial sector, the Royal Bank of Scotland in

2006 established the RBS Business School at Gogarburn,Edinburgh, for the leadership development and general

management education of RBS executives and senior

managers.The training primarily draws on staff from

Harvard Business School.The Financial Services Advisory

Board (FiSAB), chaired by the First Minister, also has a

strategy for financial services sector, which includes apillar on people development, and industry/university

collaboration.

How does the Scottish i) policy and ii) research

capability in this area compare to that in the UK

and in other nations/regions internationally?

There is a need to distinguish between capabilityand

capacity.Given the number of business schools in

Scotland there is probably at least as much capacity as in

any other region or nation of the UK and much more

than in some,but in business management research, there

is no Scottish institution in the top 10 2008 RAE GPA

rankings (SeeTable 1). Of the 21 university institutions in

Scotland, 13 submitted their research to the Business &

Management Studies sub-panel of the 2008 RAE.

Table 1 shows the individual performance of the Scottish

institutions in the research activity submitted to that

sub-panel.The FTE column of the table shows the

number of category A staff submitted in terms of full-time

equivalents, the GPA column shows the weighted average

across with 5 categories of the profile (using 4 as the

multiplier for 4*, 3 for 3*, etc) and the ranking column

shows the position occupied in the 90 institutions whenusing the GPA figure for the ranking.

Table 1: Performance of Scottish business schools in Business & Management Studies in the 2008 RAE, sorted by rank

SCOTLAND FTES 4* 3* 2* 1* 0 GPA UK RANK

University of Strathclyde 88.88 25 40 30 5 0 2.85 11

University of St Andrews 22.00 10 50 35 5 0 2.65 19

University of Glasgow 22.15 10 45 30 15 0 2.50 29

University of Edinburgh 52.65 10 40 35 15 0 2.45 35

Heriot-Watt University 36.23 10 35 40 15 0 2.40 41

University of Stirling 31.90 10 30 40 20 0 2.30 46

University of Aberdeen 21.25 10 30 40 15 5 2.25 48

Robert Gordon University 12.90 5 35 30 25 5 2.10 58

Glasgow Caledonian University 17.00 0 25 50 20 5 1.95 64

University of West of Scotland 5.00 5 25 25 40 5 1.85 64

Napier University 31.00 0 15 45 35 5 1.70 78

University of Abertay Dundee 9.00 0 15 35 40 10 1.55 84

Queen Margaret University Edinburgh 19.00 0 5 25 60 10 1.25 90

Source: derived from the 2008 RAE results


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This table shows that two Scottish institutions, Strathclydeand St Andrews, make it into the UK top 20 when usingGPA as the ranking criterion,but none is in the top 10.It should be noted that 8 out of 13 Scottish institutionswere in the bottom half of the performance table if GPAis used as a performance measure in the 2008 RAE.Thisindicates that, were the 2001 RAE rules to be applied tothe 2008 submissions,at least one Scottish institutionwould have gained a 5 grade, and a larger number wouldhave gained a 4 rating.This suggests a slight relativeimprovement since 2001.

Overall, the results indicate that there is a need to raisethe game at the top end, and that research expertise inbusiness and management studies may be spread too thinlyin Scotland to allow it to compete successfully on a worldstage, with only two Scottish universities submitting more

than 50 staff (Strathclyde and Edinburgh).In the FTEuropean business school rankings5, however,Strathclydeis 5th in the UK although only 17th in Europe.A researchcitation analysis of the world top 200 business schools in2005, undertaken at the Grenoble School of Managementin France6, listed only one Scottish business school, theUniversity of Strathclyde, at rank 163 (14th in the UK).The top UK listing was for the London Business Schoolat 17th place,followed by the University of Manchester at36th place (See Appendix 3).

In terms of policy other than the broad area of knowledge

transfer, Scotland does not have a clear policy on businessschool investment and development, and researchopportunities and resources in this area are alsocomparatively limited in the UK as a whole. Overseascompetition, however,is becoming more intense,especially from Chinese and Indian business schools,which are willing to pay competitive salaries to recruittop academics. In the USA and a number of Europeancountries including France, Sweden and Scandinavia, thereis a strong tradition of intimate links between individualBusiness Schools and specific groups of companies fortraining, recruitment, consultancy and research, which is

rare in the UK.

What are Scotlands strengths and weaknesses?

Business schools in Scotland do well in providingundergraduate degrees, as well as bringing in a significantnumber of foreign students to do MSc degrees, andHeriot Watt University has an innovative on-line MBAprogramme. But they do not have a good track record in

leadership and skills development for more experiencedmanagers. In the FT Global Executive Education list,there are seven English Business Schools listed but noScottish ones.The study by Glasgow Business School7

highlighted that the reputation of the Scottish businessschools was low with the major private sectororganizations (and to a lesser degree public organizations)for impact on anything other than MBA level teaching.This was a problem because it prevented the businessschools from undertaking engaged researchwith seniorexecutives, and that this mattered because not onlydid it make it difficult for many people to undertakerelevant research but also because it limited the impacton teaching and on passing insights into practicewith the major international players, the public sectorand SMEs.

Scotland has strength in the range of different businessschools with different characters that meet the needsof different sectors or sub-sectors of the economy anddifferent types of students.The main weakness of

Scottish business schools is that they are too small tocompete internationally and they also have difficulty inattracting top quality international academics, with nobig name institution such as London Business Schoolor Harvard.

In terms of subject areas, the Association of BusinessSchools (ABS) facilitated meetings of research leaders from

all Scottish universities Business Schools toattempt to map areas of strengths and weaknessesacross Scotland.There were strengths in: employmentstudies/human resource management (HRM); finance;accounting; public sector/health management. Areaswhich appeared weaker in Scotland were: strategy andmanagement education.There were also areas whichwere not strong across the whole of Scotland, butwhere there were growing strengths in a numberof universities.These included marketing, leadership,tourism, and entrepreneurship. In terms of undergraduateand postgraduate teaching, Scotland has 10% of the

UK first degree student population and 9.9% of thepostgraduate student population8 for all subjects, butattracts higher or lower than average number of studentsin the following areas:


5 The FT ranking is based on the five Financial Times Business Education rankings published in 2008: full-time MBA ; the open enrolment and customisednon-degree executive education programmes; masters in management degrees; and Executive MBA.

6 V.Mangematin, C. Baden-Fuller, Global Contests in the production of Business Knowledge,Long Range Planning (2007), doi:10.1016/j.lrp.2007.11.005

7 Martin, G. & Robson, I. 2007. Segmented markets for senior executive education and the reputations of business schools. Paper presented to the ManagementEducation Division of the Annual Conference of the Academy of Management, August 6-11th.

8 Universities UK (2008). Devolution and higher education: impact and future trends. Research report. http://www.universitiesuk.ac.uk/Publications/Documents/DevolutionAndHE.pdf


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In the 2008 RAE, three of the thirteen research activeScottish Universities had significant research in operationalresearch and management science (OR/MS): Edinburgh,Stirling and Strathclyde.

What efforts exist at Scottish, UK and Europeanlevel to support developments in Business Schools?

The UK has recognised many of these weaknesses andthere have been programmes funded by the Economic

and Social Research Council (ESRC), the Foundationfor Management Development, the British Academy ofManagement,the Association of Business Schools andothers, such as the British Academy of Management,designed to improve Business School skills in researchand sometimes in teaching. For example, the AdvancedInstitute for Management research (AIM) initiative, fundedby both the (ESRC) and the Engineering and PhysicalSciences Research Council (EPSRC), was established in2002 in order to increase the contribution of world classUK management research. Since Autumn 2003 it hasawarded 52 AIM Fellowships, and funded research projects

on sustained innovation, promising practices, servicesand productivity and performance.The ESRC is alsoconsulting on setting up doctoral training centres acrossthe UK. Nevertheless, the elite business schools of the

world (including London Business School) havedeveloped over many years of intimate involvement withgood companies and strong focus on first rate teachingand consultancy.Training programmes for a smallproportion of academics cannot replace the leadingbusiness schools strong company linkages and thereputations born of many years of excellent teachingand consultancy.

There are few governmental efforts to support business

schools. Sweden, Norway and France have moresupportive funding regimes than the UK, but most othercountries depend on businesses to support the schools.

Where are the current world leaders in this area?Can Scotland realistically take a lead in any aspector aspects of this area?

Details of international rankings can be found in the FTBusiness Schools table (Appendix 2), although institutions,such as the University of St.Andrews, which do not offerMBAs are missing from such rankings.The RAE clearlyindicates that there is world class research conducted in

Scotland, but this does not mean that Scottish universitybusiness schools are world leaders in any specific area.

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FIRST DEGREE

Subject area Percentage of UK students *

Tourism, transport & travel 17.7%

Finance 13.5%

Human resource management 13.5%

Accounting 12.9%

Marketing 8.8%

Business studies 8.5%

Management studies 8.0%

Economics 7.4%

POSTGRADUATE

Subject area Percentage of UK students *

Tourism, transport & travel 15.8%

Accounting 14.7%

Human resource management 14.1%

Business Studies 13.3%

Marketing 11.7%

Finance 10.5%

Economics 10.0%

Management studies 5.9%

(*Source:Appendix 4.Those in italics are below the Scottish average for student proportions)


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According to the FT rankings, most of the world leadersare in the United States (e.g. Harvard,Wharton,MIT,Stanford, Chicago, Columbia), but in Europe the UKsLondon Business School is world leading, along withINSEAD and HEC Paris in France, IE in Spain and IMDin Switzerland. Schools are also developing in China,India and Singapore. As mentioned above however, thereis a spectrum of different management schools in termsof their focus on:

1 undergraduate business education versus post-graduateMBA,versus PhD versus executive education diploma.

2 teaching focus, versus research focus

3 case based, versus eclectic mix of pedagogy

4 part-time students versus full-time students

5 12-month MBA versus a 2-year MBAThis n dimensional space has world-class universities ineach cell. The most crowded and competitive are the 1and 2-year MBA programs. Competing with theseinstitutions will be difficult in the absence of a uniqueselling proposition and any serious attempt to upgradeto international levels could take some 15 to 20 years,

consistent long-term funding, and a close interaction withbusiness. This latter point is all the more important,as theleading US schools have already changed their programssuch that much more time is being spent by students onhands-on projects in company settings, supervised bymanagement school staff. In addition, all the top schoolshave some form of active major alliance(s) with Asiancounterparts.

Scottish schools often seek to cover the full rangeof activities rather than specialising in a few. If Scottishbusiness schools were to focus on niche areas,an areaof opportunity might be in finding synergy with areasof Scottish strength,such as public sector management(including health), sustainable development (includingrenewable energy, water, food), engineering or financialservices.

What is the balance between research and teachingin Scottish business schools?

A summary of business management teaching andresearch provision is shown below in Table 2, and detailsof postgraduate and undergraduate numbers by institutionis shown in Appendix 4.


Institution Under-graduate Post-graduate Research Centres

teaching degree teaching degree

University of Aberdeen MBA,MSc Centre for European Labour Market Research; Centre for

Business School Entrepreneurship; Scottish Experimental Economics Laboratory

University of Abertay MBA,MSc Scottish Economic Research Centre

Dundee Business School

Dundee University MBA MSc Centre for Enterprise Management;

(Postgraduate School of Centre for Water Law, Policy and Science;

Management and Policy; Centre for Energy, Petroleum and Mineral Law and Policy

School of Accounting

and Finance)

Edinburgh Napier MBA,MSc Employment Research Institute; Centre for Entrepreneurship;

Business School CIM, CIMA Edinburgh Human Resource Academy;

Centre for Festival & Event Management;

EU-China Development & Research Centre

University of Edinburgh MBA,MSc Centre for Financial Markets Research;Credit Research Centre;

Business School Institute for Public Sector Accounting Research (IPSAR);

Centre for the Study of Retailing in Scotland;

Research Unit for Research Utilisation (RURU);

Centre for Public Services Research (CPSR); Carbon

Benchmarking Project; Centre for Entrepreneurship Research

Glasgow Caledonian MBA,ACCA Cullen Centre for Risk and Governance;

Business School CIMA,CIPFA, Caledonian Family Business Centre;Caledonian Heritage Futures

MA, MAcc Network; Glasgow Centre for Retailing; Centre for Public Policy

and Management

Table 2: Business and Management Teaching and Research Provision in Scotland


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Institution Under-graduate Post-graduate Research Centres

teaching degree teaching degree

University of Glasgow *1 MBA,MSc Centre for Business History in Scotland;

Business School Centre for Internationalisation and Enterprise Research;

Centre for Reputation Management through People;Complex Services Innovation Research Network;

Training and Employment Research Unit

Heriot Watt University *2 MBA,MSc Logistics Research Centre (LRC);George Davies Centre

for Retail Excellence (GDCRE);Centre for Economic Reform

andTransformation (CERT)

The Open University MBA, MSc, MPA Accounting & Finance Research Unit;Human Resources

in Scotland Research Unit; Law Research Unit; Management of Knowledge

Open University & Innovation Research Unit; Marketing & Strategy Research Unit;

Business School Public Leadership & Social Enterprise Research Unit;

Centre for Innovation,Knowledge and Development;

Institute for Social Marketing

Queen Margaret University MBA, EMPSM Scottish InternationalTourism Industries centre for research

School of Business,Enterprise and knowledge transfer (SITI);Scottish Centre for Enterprise

and Management & Ethnic Business Research (SCBEER); International Centre

for the Study of Planned Events;Consumer Policy Foundation

Robert Gordon University MBA, MSc, MPA Centre for Entrepreneurship;Centre for International Labour

Aberdeen Business School Market Studies(CILMS); Centre for Knowledge Management

(CKM);Centre for Public Policy and Management (CPPM):

Scottish Centre ofTourism (SCoT); Research Centre for

Transport Policy

Scottish Agricultural College MBA Land Economy Research Group

University of St.Andrews MSc, MLitt Centre for Social and Environmental Accounting Research

School of Management (CSEAR);The Social Dimensions of Health Institute (SDHI);

St Andrews Institute for Sustainability (SASI);

Institute for Capitalizing on Creativity (ICC)

University of Stirling - MBA,MSc Public Sector Management Research Group; Contemporary

Stirling Management School Workplaces Research Group;Scottish Institute for Research in

Economics (SIRE); Stirling Centre for Economic Methodology

(SCEME);Money and Banking inTransition Economies Stirling

Research Network (MBITE-SRN);Institute for Retail Studies;

Institute for Social Marketing;Tourism Research Group;

Consumption,Markets and Cultures Research Group

University of Strathclyde MBA, MSc, MBM, Fraser of Allander Institute;Strathclyde Institute for Operations

Business School MIM, MCM Management; Strathclyde International Business Unit;

Scottish Centre for Employment Research

University of theWest EMBA, MSc Centre for Contemporary European Studies

of Scotland Business School

UHI Millennium Institute MSc

Faculty of Business and Leisure

*1 Undergraduate teaching through the Faculty of Law, Business & Social Sciences;

*2 Edinburgh Business School and the School of Management and Languages


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Universities clearly identify themselves as teaching-or research-led and there is considerable variation inpractice across Scottish universities. However, as mostScottish business schools receive most of their fundingfrom teaching, rather than research, there is a strong focuson teaching. Some business school research has developedfrom the assumption that a strong research base is

essential for good teaching, which is similar to the

development of research focus in many vocationaldisciplines in the UK, for example in nursing.Alternatively, some Scottish schools focus on the policyimplications of their research and engagement withGovernment policy. In terms of undergraduate andpostgraduate teaching,the institutions with the highestnumbers of undergraduate and postgraduate students are:

Many academic staff in the Scottish business schools haveheavy teaching loads and PhD students are the backboneof many research programmes.As there is little ResearchCouncil funding for business subjects, there are few

Research Assistants and Associates. Some Business Schoolshave some research-only professors, and most have asubstantial number of part- or full-time teaching-onlystaff, to lighten the burden on researchers, and also to meetdemands from MBA students for practitioner experiencein staff.

The co-creation of research and teaching programmes isparticularly important with the various stakeholders of a

university business school in order to develop a purposeful,value-creation orientated community. In this context, thereis seen to be a weakness within Scottish business schools innot having made their research sufficiently accessible to, andrelevant to, the needs of the business community.There isvalue in research that takes forward theory but there needsto be a means of producing business-relevant appliedresearch and there needs to be a means of recognizing itsvalue.At present academic staff see conflicting priorities inresearch ratings,citation measures, esteem indicators andgrant application success rates.

What barriers exist to exploiting the existing

capability? (eg people, facilities, access to marketsetc)What action could be taken by which actorsto remove or minimise these barriers?

Characteristics of the Scottish Business Schools:

Business schools postgraduate and post-experienceprogrammes are financially very important to theuniversities. However, the business schools and their staffdo not enjoy a high status in some of the older universitiesand they do not enjoy the influence one mightexpect on the basis of student numbers and income.Their relatively small size also gives them limitedbargaining power to address their problems.Anotherproblem results because the subject is so fragmented inScotland, with a strong emphasis on each businessdiscipline, with different disciplines competing with each

other rather than presenting a united front.Underlying these issues is one of conflicting cultures.While a successful business school benefits from a stronginternational multidisciplinary research culture present inuniversities, administratively, universities perhaps rightly,have a tradition anchored in public serving, state funded,increased access undergraduate education.This contrastswith elite business schools which are more schools forbusiness than the academic study of business, and whichare focused on delivering a professional and expensive,high quality service.Another feature of these schools istheir relative financial independence and ability to reinvest,

which is often hampered when business schools are partof a larger university with tight controls on how muchincome schools can retain for reinvestment.


FIRST DEGREE

Institution Proportion and numbers of Scottish students *

Glasgow Caledonian University 14.4% (2,545)

University of Strathclyde 12.3% (2,160)

Napier University 11.6% (2,045)

POSTGRADUATE

Institution Proportion and numbers of Scottish students *

Heriot Watt University 19.0% (2,355)

University of Strathclyde 17.2% (2,125)

Robert Gordon University 12.1% (1,495)

(* Percentage of the total of the following subjects in Scotland: Economics, Business studies, Management studies, Finance,Accounting, Marketing, Human resource, management,

Tourism, transport & travel, Others in business & administrative studies) see Appendix 4.


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Staffing issues:

Business Schools in the new universities have a highproportion of staff with business/industry experience.However they have few staff with research training and

the type of educational background which is requiredfor first-rate research. On the other hand,the old andespecially the ancient universities have few business schoolstaff with industry experience.There is no incentivewithin the RAE-driven system to hire people withpractitioner experience except in teaching-only roles.Concerted and consistent funding is therefore requiredto attract high quality research-active international staff.It should be noted that the world-leading schoolsmentioned above are very international in outlook andhave high proportions of foreign faculty. Business schoolsare unlikely to obtain an international reputation if their

faculty are largely local or even national, and use could bemade of the Globalscots network, established by ScottishEnterprise.

Industry issues:

Scottish business schools have a major problem if theyfocus primarily on the Scottish market in that there arerelatively few international companies headquartered in

Scotland, or major business/industrial centres in Scotland.In practice, this makes it very difficult for academic staffand business schools to have close links with an goodcompanies.Also,some multinational companies have their

own training facilities and bring in expertise to delivermaterial in- house, such as the RBS Business School.Great business schools take many years to build and havegrown up symbiotically with their company partners.They have a high degree of autonomy, operating usuallyat post-experience level, which has allowed their staff tointeract intensively and over time with company staff.

Competition

Previous attempts at collaboration have failed because ofintense competition between schools for postgraduatestudents, whose income is very important to universities.A focus on research pooling, in which participation couldbe claimed by all, rather than on fee paying postgraduatestudent teaching,might avoid this as there would be lessimpact on numbers of fee paying students.

Research funding

Compared with teaching income, Scottish business schoolsdo not have access to much research funding and, becausethe subject is a coalition of different sub-disciplines,Research Council grant applications often founderbecause the examiners are from a different sub discipline

to the application. Possible solutions would include theprovision of improved conference funding schemes,publication bounty schemes, internal small research grant

funding schemes, and the establishment of school-wideresearch assistant posts. Scotland-wide, niche researchsub-areas of business could be identified in which groupsof leading business schools excel, and a program ofenhanced marketing of those niche strengths undertakenas a group to enhance Scotlands international businessresearch profile. In terms of business research funding,getting buy-in from partners in commerce and industrycan also problematic and initiatives are needed to drawstakeholders together and derive mutual benefit fromcollaboration.

Are there key elements of policy or structurewhich are currently not present in Scotlandand which should be developed?

Currently, Scotland does not have a recognised world

leading strategic leadership business school. Since the1970s there have been a number of unsuccessfulcollaborative attempts to try to create one but onequestion to ask is: does Scotland need one? The greatbusiness schools of the world serve elite,fast trackmanagers and entrepreneurs. For a relatively small outlay,Scotland could fund its up-and-coming managers andentrepreneurs on programmes at INSEAD, LBS,Wharton etc.Current policy supports one suchscheme sends Saltire Fellows to Babson, the leadingentrepreneurship business school. In addition, companiesfund some managers on programmes at INSEAD,

Harvard etc, and some individuals fund themselves.At home, the Royal Society of Edinburgh EnterpriseFellowship Programme provides an excellent modelfor a non-business school business-training programmefor academic entrepreneurs.

It is doubtful whether any policy or amount of resourcecould create a world leading Scottish business schoolalong the lines of LBS or INSEAD within 15 to 20 years.It is also questionable whether a Scotland-based businessschool would offer better advantages to Scottish managersthan they have when they attend outstanding businessschools elsewhere, where they gain exposure to different

educational systems and different environments and thenbring contacts and learning back to put into use inScotland. In addition, the lack of a strong industrialhinterland may prove the biggest challenge.World ClassBusiness Schools tend to be very close to world classbusiness and provide clearly differentiated services andcollaboration opportunities. Scotland has little large scalebusiness to partner with in this sort of project and thus thepurpose, scope and scale of such a school would need tobe very carefully thought out in the planning stage.Ultimately, this is a knowledge business and the visionfor such a school needs to be precise enough and

compelling enough to draw world class people to formthe community that would drive the project.



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However,if the Scottish Government is to take industrialand commercial development seriously, it needs moreexpertise in this area. One possibility would be to seekto establish a series of collaborative arrangements thatfocussed on business/commercial areas that made sense ina Scottish context around industries/service sectors, andareas of potential international expertise.There is alsoinsufficient recognition of the specialist marketing needsand the very competitive markets for business schoolstudents.Australian universities provide a very attractiveEnglish-speaking education and their marketing is muchmore aggressive than that in Scotland.

How do existing and developing researchcollaborations, in particular research pooling,within Scotland affect the research activityof Scottish business schools?

Across the UK as a whole, stronger economics groupsseem to have submitted their work to the Economics &Econometrics panels in 2001 and 2008 and, in RAEterms, have profited from the higher ratings awarded bythat panel compared to other areas in the 2008 RAE.Success in Scotland may reflect the support given toeconomics groups by the SIRE economics pool initiative.

Management and business draw on a wide range ofactivities from finance to marketing, making it difficultto get a cohesive whole for pooling. However,researchpooling in management and business could counter the

small size of schools within institutions, increasing theirprestige and status similar to that or other social scienceschools or departments. Such research collaborationsmight also allow Scottish Business schools to win moreResearch Council and EU funding,and so build capacity.Nevertheless, the primary need for business schools is tointeract with industry and with business school researcherselsewhere,to supplement their limited access to industryin Scotland and to provide comparative data, which is thethrust of much research collaboration.

What might the Council do to enhance the research

and knowledge exchange activities of businessschools and increase the absorptive capacity ofindustry in relation to innovation?

The issue of increasing the absorptive capacity of industryin relation to innovation is one which the RSE is seekingto address.To this end it is setting up a Business R&DForum which will:

identify and propose mechanisms to encouragegrowth of research-led innovation in Scottishcompanies

identify and propose mechanisms by which businessin Scotland could make better use of the strengthof the Scottish research base to enhance innovationand stimulate economic growth.

as an independent body, advocate these mechanisms tothe Scottish Government and to other bodies withrelevant responsibilities and capacities;

interact with other bodies concerned with theoperation of the research base and with economicand business development in Scotland;

where appropriate, publish reports, to create workgroups and other activities to pursue its objectives,activities which may include members outwith theForum.

In terms of the research and knowledge exchangeactivities of business schools, the challenge is to makesteady and continuous improvements in both teachingand research across the board in the Scottish businessschools, over many years. This can best be achieved by

habitually training and supporting all staff in their teachingand research,and by developing much stronger links

between companies and business schools, for teaching,research, consultancy and recruitment. Incentivisinguniversities to invest in the business schools rather thanredirecting all their profits would help in this, and wouldultimately lead to higher income from programmes.

Over time this would be likely to result in thedevelopment of a more substantial cohort of ableresearchers in our business schools.Some of these wouldundoubtedly leave, but the Scottish business schoolswould be better able to attract good people in their place.

After 20-30 years of consistent improvement one or moreof our business schools might then come to rank with thecurrent world leaders for its research. However,without aclear strategy and vision of what a business school aspiresto be, and an understood and clearly communicated needfor change, change will not happen.

It also comes down to a need to change the culturesurrounding business schools to make them more businessfocussed.One way the SFC might facilitate this would beto offer business schools money on a loan basis,on thebasis of a business plan, that they would need to pay back.

To justify this, competing universities would need toshow that they are able to take steps that will unleash thepotential creativity of business schools by permittingdevolved budgets and the reinvestment of surpluses.Alternatively, effort could be concentrated on to one ortwo institutions, investing around existing strengths, toraise them to world class levels. Funding could be offeredon a competitive basis, with bids on the basis of increasedbusiness engagement.

Other initiatives could include:

Undertaking a more detailed inquiry into businessschools in Scotland,with the aim of identifying andarticulating a strategy for Scotland,and the niche areasthat could be developed



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Creating Scottish-funded research grant mechanisms,for collaborative projects (in money and/or in kind)with Government and business, both in Scotland andinternationally

Creating university/business forums for presenting/discussing research programmes and priorities

Promoting partnerships with top internationalbusiness schools which would exchange staff andstudents on a systematic basis, enhancing graduateemployability and improving research output ofhigh international standing.

Developing web and other media for maintainingcentralised or aggregate research activity profiles andbulletins that gather information on researchinitiatives across Scotland for access by media,

government, business, international organisationsand researchers.

Such strategies would require the collaboration ofgovernment, business schools, business and professionalassociations.

At the University of Edinburgh business school,andat Strathclyde, Robert Gordon and St.Andrews, MBAstudents work with local businesses in addressing theirproblems, as part of their degree course.There could alsobe opportunities to link management training withscience postgraduate degrees, and work- based masters.However,as these courses are not fully funded by the

Funding Council there is less motivation for BusinessSchools to provide them when they have full postgraduateprogrammes.The SFC might need fully to fund them inorder to promote their development in business schools.

The RSE believes that to have an internationally ratedbusiness school, drawing executive customers internation-ally to Scotland would be extremely valuable, bringingspin offs to the local participants and to the local economy

What role can schools play in increasing businessawareness of the potential of research andinnovation within Scottish universities?

Some of the modern universities have made significantstrides in their engagement with businesses and thepublic and voluntary sectors. However,experience fromthe Technology Transfer Society of North America isthat business schools are not active players but tend to belargely involved in ex-post analysis of the experience.It is not clear to what extent the conclusions from suchwork influence actual transfer policy. Nevertheless, theSFC could fund a series of seminars on turning researchinto action involving Scottish business schools. InCambridge, the business school has developed a centrefor entrepreneurship and learning which is interacting

with spin-out companies located in the vicinity.Thisinteraction is now a major activity for the school. Similarinteractions could be encouraged in Scotland.

What is the relationship between business schoolsand industry? How are business schools perceivedby government and industry?

There a range of different offerings which universities

can make for business and public sector organisationssuch as the dissemination of knowledge from research,increasingly collaborative research and knowledgeexchange or co-production. More commercialrelationships could include commissioned research,provision of training and development through shortcourse,CPD and professional programmes, creditrating and consultancy. The traditional model of thedissemination of knowledge from research, mightincreasingly be replaced by collaboration or commercialactivities. However, the latter are affected by the generaleconomic climate and put universities in competitionwith private consultancy companies.

In terms of collaborations with industry some examplesinclude:

LloydsTSB has partnered with the StrathclydeBusiness School for a number of years in termsof various economic reports they deliver, particularlyin terms of the financial services, which they havefound useful.Strathclyde business school also attractsresearch funding from companies and organisationssuch as the Scottish Government,NASA, Babcock,Thales International, and Morgan Stanley.

The Chief Scientists Office in the ScottishGovernment Health Directorates fund healtheconomics at the Business School at AberdeenUniversity.

The Clydesdale Bank funds the Connecting forGrowth programme at Glasgow University, providingbusiness training for SMEs.

However,many Scottish business schools do not havestrong links with industry, although there may be goodrelationships on an individual level.This is partly becausethere is not enough industry in Scotland and partlybecause many research-driven staff prefer to research

inside the business school and comment on, rather thaninteract with, the corporate world. Industry in Scotlandreciprocates this lack of interest, reflecting the perceptionthat Scottish business schools do not have relevantknowledge to impart.Accountancy Departments oftenhave good links with their professional bodies, but rarelywith major accountancy firms, which do not find theirresearch focus helpful. Scottish engineering departmentstend to have much better industry links than businessschools. Being close to practitioners, however,is importantfor a practice-based topic such as business, as the subjectchanges quickly and teaching needs to be at the forefront

if it is to be relevant.



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Undergraduate and postgraduate students from Scottishbusiness schools, however, normally find a ready jobmarket in Scotland (and beyond), and Schlumberger plchas chosen the specially developed Heriot Watt Edinburgh

Business School MSc programme in Management for theOil and Gas Industry for its senior managers across theworld.

In what areas do business, industry and

government tend to look outside Scotland

for business school advice?

Scottish businesses still tend to look outside Scotlandwhen it comes to senior manager education anddevelopment, as they find the international institutionsmore challenging and, to an extent, more relevant to theirneeds than they do Scottish business schools, particularlyin the fields of technology entrepreneurship.Theexception may be the in-company MBAs designed bybusiness schools for delivery in-house.The financial sectoralso looks to consultants such as Scottish InvestmentOperations to provide it with training and the Royal Bankof Scotland has set up its own business training school.

In terms of business research, where companies seekspecific expertise, for instance in the area of electronicsmanagement development,they would not turnto a particular business school but,rather,to a particularprofessor with relevant expertise.This might or might not

reside in a Business School or in Scotland. It might bein a mainstream faculty or in a Business School facultyelsewhere.

In terms of high level management consultancy, industryand government also tend to look to non-Scottishproviders, such as specialist consultants of business schools.Scottish Enterprise has looked to Harvard Business Schooland Babson for advice and expertise in building skills inmanagement education.However on the local scale,

Scottish based business schools can and do provide localcontextual understanding for local businesses and are in a

position to build on- going relationships.

Additional Information

This report has been prepared for the Scottish FundingCouncil by the Royal Society of Edinburgh.The viewscontained within this report do not necessarily reflectthose of the Council.Any enquiries about this submissionand others should be addressed to the RSEsEvidence & Advice Manager, Dr Marc Rands(Email: [email protected]) .

Responses are published on the RSE website

(www.royalsoced.org.uk) .The Royal Society of Edinburgh, Scotlands NationalAcademy, is Scottish Charity No. SC000470.

Appendix 1: Contributors to this response

The Royal Society of Edinburgh is grateful to the followingfor their assistance in the preparation of this paper:

Professor Alan Alexander FRSE, Council Member

of the ESRC

Donald Anderson FRSE, InternationalTrade and EconomicAffairs Consultant; Former Director of Communicationsand Economics, Courtaulds plc, London

Professor Ian Ball, Dean of Postgraduate Schoolof Management and Policy, University of Dundee

Professor John Beath FRSE, Professor of Economics,University of St Andrews; Secretary-General,Royal Economic Society

Professor Angela Black, Head of the University ofAberdeen Business School

Professor George Borthwick FRSE, Chairman of MpathyMedical Devices Ltd; Chairman, Court of NapierUniversity

Professor Jane Bower FRSE, Former Chair in EnterpriseManagement, University of Dundee

Professor Jane Broadbent, DeputyVice-Chancellor,Roehampton University; member of the 2008 Business& Management RAE sub-panel

Miss Frances Cairncross FRSE, Member, ScottishGovernment Council of Economic Advisers,Rector Exeter College Oxford.

John Campbell, Senior Managing Director, State StreetInvestment Manager Services Europe,Edinburgh

ProfessorTariq Durrani FRSE, Professor of SignalProcessing, University of Strathclyde)

Professor Robert Elliott FRSE, Professor of Economics,University of Aberdeen

Professor Saul Estrin, Head of the Department ofManagement, London School of Economics

Chris Greensted,Associate Director, Quality Services,European Foundation for Management Development

(EMFD), Belgium; Formerly Director,StrathclydeGraduate Business School

Professor Susan Hart FRSE, Dean of Strathclyde BusinessSchool

Professor Gillian Hogg, Head of the School ofManagement and Languages, Heriot Watt University

Professor Anthony Hopwood, Professor of OperationsManagement, Sad Business School, University of Oxford

Sir Laurence Hunter FRSE, Former Director, Universityof Glasgow Business School

Professor A G Kemp FRSE, Schlumberger Professorof Petroleum Economics, University of Aberdeen

Alick Kitchin, Business Director, Edinburgh BusinessSchool,Heriot Watt University



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Professor Angus Laing, Head of University of GlasgowBusiness School

Professor Niall Lothian,Adjunct Professor of Accountingand Control, INSEAD, France

Professor Keith Lumsden FRSE, Director,EdinburghBusiness School, Heriot Watt University

Professor Donald MacRae FRSE, Strategy and FinanceDirector,LloydsTSB Scotland)

Professor Graeme Martin, Director of Centre forReputation Management through People, Universityof Glasgow Business School

Dr Chris Masters FRSE, Former Executive Chairman,Aggreko plc and former Chairman, SHEFC

Professor Peter McKiernan, Head of School of

Management,University of St Andrews

Sir Tom McKillop FRSE, former Chairman,Royal Bank of Scotland Group

Professor David Milne FRSE, Non-executive Director,Wolfson Microelectronics Ltd

Professor Chris Montgomery, Egon Zehnder International,Los Angeles; CEO, Seamont Group;Visiting Professor,University of Edinburgh

Professor Anton Muscatelli, Principal, HeriotWattUniversity; Convenor of Universities Scotland

Professor Nick Oliver, Head of University of EdinburghBusiness School

Professor Lee Parker, Professor of Accounting, School ofCommerce, University of South Australia

Professor Michael Pidd, Chair of the Business &Management Panel for the 2008 RAE, Professorof Management Science,Lancaster University

Dr Susan Rice FRSE, Chief Executive, LloydsTSBScotland

Ian Ritchie FRSE, Non-Executive Director,Scottish Enterprise and Channel 4

Professor Mark Schaffer FRSE, Professor of Economics,Heriot-Watt University

Professor Michael S. Scott Morton, Professor of

Management (Emeritus) at MIT Sloan Schoolof Management, USA

George Stonehouse, Dean Research & Knowledge Transfer,Napier University Business School

Professor Martin Walker, Deputy Director of ManchesterBusiness School

Professor Pauline Weetman FRSE, Professor of Accounting,University of Edinburgh Business School

Robin Wensley, Director,Advanced Initiative inManagement (AIM), London


Appendix 2: Financial Times listings

FT GLOBAL MBA RANKINGS 2009

Rank in 2009 School name Country

1 London Business School U.K.

1 University of Pennsylvania:Wharton U.S.A.

3 Harvard Business School U.S.A.

4 Columbia Business School U.S.A.

5 Insead France / Singapore

6 IE Business School Spain

6 Stanford University GSB U.S.A.

8 Ceibs China

9 MIT: Sloan U.S.A.

10 New York University: Stern U.S.A.

11 University of Chicago: Booth U.S.A.

12 Iese Business School Spain

13 Dartmouth College:Tuck U.S.A.

14 IMD Switzerland

15 Indian School of Business India

16 Hong Kong UST Business School China


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17 University of Cambridge: Judge U.K.

18 Esade Business School Spain

19 Yale School of Management U.S.A.

20 University of Oxford: Sad U.K.

21 Northwestern University: Kellogg U.S.A.

22 Duke University: Fuqua U.S.A.

23 University of Michigan: Ross U.S.A.

24 Nanyang Business School Singapore

24 Emory University: Goizueta U.S.A.

26 Rotterdam School of Management, Erasmus University Netherlands

27 Lancaster University Management School U.K.

27 University of Virginia: Darden U.S.A.

29 HEC Paris France

29 UCLA: Anderson U.S.A.

31 University of California at Berkeley: Haas U.S.A.

32 Australian School of Business Australia

32 Manchester Business School U.K.

34 Cornell University: Johnson U.S.A.

35 National University of Singapore School of Business Singapore

35 Cranfield School of Management U.K.

37 Warwick Business School U.K.

38 SDA Bocconi Italy

39 Imperial College Business School U.K.

40 Georgetown University: McDonough U.S.A.

41 University of Strathclyde Business School U.K.

41 City University: Cass U.K.

41 University of Arizona: Eller U.S.A.

44 University of Maryland: Smith U.S.A.

45 University of North Carolina: Kenan-Flagler U.S.A.

46 University of Rochester: Simon U.S.A.

47 University of Toronto: Rotman Canada

47 University of Western Ontario: Ivey Canada

49 York University: Schulich Canada

49 University of Texas at Austin: McCombs U.S.A.

51 Carnegie Mellon:Tepper U.S.A.

52 Melbourne Business School Australia

53 Rice University: Jones U.S.A.

53 University of Pittsburgh: Katz U.S.A.

55 University of Illinois at Urbana-Champaign U.S.A.

56 Vanderbilt University: Owen U.S.A.57 Leeds University Business School U.K.

57 Boston University School of Management U.S.A.

57 Texas A & M University: Mays U.S.A.


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60 Indiana University: Kelley U.S.A.

60 University of Southern California: Marshall U.S.A.

60 Washington University: Olin U.S.A.

63 University of Florida: Hough U.S.A.

63 Michigan State University: Broad U.S.A.

63 University of Iowa:Tippie U.S.A.

63 Pennsylvania State University: Smeal U.S.A.

67 University of Washington Business School: Foster U.S.A.

67 Thunderbird School of Global Management U.S.A.

67 University of South Carolina: Moore U.S.A.

70 SMU: Cox U.S.A.

71 University of British Columbia: Sauder Canada

71 University of Cape Town GSB South Africa

71 University of Minnesota: Carlson U.S.A.

74 University of California at Irvine: Merage U.S.A.

75 Vlerick Leuven Gent Management School Belgium

76 Arizona State University: Carey U.S.A.

77 University of Alberta Canada

77 Aston Business School U.K.

77 University of Notre Dame: Mendoza U.S.A.

80 Durham Business School U.K.

80 Purdue University: Krannert U.S.A.

80 Ohio State University: Fisher U.S.A.

83 Birmingham Business School U.K.

83 University of Bath School of Management U.K.

85 George Washington University U.S.A.

86 Wake Forest University: Babcock U.S.A.

87 Grenoble Graduate School of Business France

87 Bradford School of Management/TiasNimbas Business School U.K. / Netherlands / Germany

89 Boston College: Carroll U.S.A.

89 Babson College: Olin U.S.A.

91 Eada Spain

92 Coppead Brazil

92 University of Edinburgh Business School U.K.

92 Brigham Young University: Marriott U.S.A.

95 Case Western Reserve University: Weatherhead U.S.A.

95 Wisconsin School of Business U.S.A.

97 Hult International Business School U.S.A. / U.K. / U.A.E

98 University of Miami School of Business U.S.A.

99 University College Dublin: Smurfit Ireland100 Nottingham University Business School U.K.


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FT EU BUSINESS SCHOOLS RANKING 20089

Rank 2008 Business school name Country*

1 HEC Paris France

2 London Business School UK

3 Insead France / Singapore

4 IE Business School Spain4 IMD Switzerland

6 ESCP-EAP European School of Management France / UK / Germany / Spain / Italy

7 Iese Business School Spain

8 EM Lyon France

8 Rotterdam School of Management, Erasmus University Netherlands

10 Vlerick Leuven Gent Management School Belgium

11 Esade Business School Spain

11 Essec Business School France / Singapore

13 Cranfield School of Management UK

14 City University: Cass UK

15 Stockholm School of Economics Sweden / Russia / Latvia

16 Warwick Business School UK

17 Helsinki School of Economics Finland / S. Korea / Singapore

17 University of Strathclyde Business School UK

19 University of Oxford: Sad UK

20 Lancaster University Management School UK

21 SDA Bocconi Italy

22 Solvay Business School Belgium

23 London School of Economics and Political Science UK

24 University College Dublin: Smurfit Ireland

25 Henley Management College UK

26 Ashridge UK

26 Reims Management School France

28 Durham Business School UK

28 Nyenrode Business Universiteit Netherlands

30 Grenoble Graduate School of Business France

30 Imperial College Business School UK

30 Universitt St.Gallen Switzerland

33 Edhec Business School France

34 Bradford University School of Management UK

35 Mannheim Business School Germany

36 University of Edinburgh Business School UK37 Copenhagen Business School Denmark

37 University of Cambridge: Judge UK

39 Eada Spain

40 TiasNimbas Business School, Tilburg University Netherlands / Germany

41 Vienna University of Economics and Business Austria

42 Nottingham University Business School UK

43 University of Bath School of Management UK

44 Audencia Nantes France

44 Manchester Business School UK

46 ESC Lille France

47 Aston Business School UK

47 Catholic University of Portugal Portugal

9 The FT ranking is based on the five Financial Times Business Education rankings published in 2008: full-time MBA ; the open enrolment and customisednon-degree executive education programmes; masters in management degrees; and Executive MBA.


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FT EU BUSINESS SCHOOLS RANKING 20089

Rank 2008 Business school name Country*

47 ESC Toulouse France

47 NHH Norway

51 ESC Rouen School of Management France

52 Universiteit Antwerpen Management School Belgium53 BI Norwegian School of Management Norway

53 Euromed Marseille Ecole de Management France

55 Leeds University Business School UK

55 Maastricht University Netherlands

57 Warsaw School of Economics Poland

58 IAG-Louvain School of Management Belgium

59 Ceram Business School France

59 ICN Business School France

61 Bem Bordeaux Management School France

62 ESC Tours-Poitiers (ESCEM) France

62 University of Cologne, Faculty of Management Germany

64 IAE Aix-en-Provence Graduate School of Management France

65 Corvinus University of Budapest Hungary

ONLINE MBA 2009 LISTING

School name Principle country Programme name Number of enrolled

online MBA students

University of Phoenix US MBA 67700

Edinburgh Business School,

Heriot-Watt University UK MBA 8403

Open University Business School UK MBA 5500

Henley Business School UK MBA by Distance Learning 4093

U21Global Singapore MBA 3700

Tec de Monterrey - Egade Mexico MBA 2354

University of Maryland

University College US MBA 2272

University of Liverpool UK MBA 2162

Manchester Business School UK MBA for Financial Managers

and Finance Professionals 1998

Kaplan University US MBA 1943

Walden University US MBA 1837Warwick Business School UK MBA by Distance Learning 1716

Indiana University: Kelley US Kelley Direct Programs 1240

Robert Kennedy College Switzerland The University of Wales MBA

at Robert Kennedy College 1114

Manchester Business School UK MBA for Engineering

Business Managers 1086

Swiss Management Center Switzerland MBA 891

Athabasca University Canada Executive MBA 870

Ellis University US MBA 736

Northeastern University US Online MBA 650

Bradford University School

of Management UK Distance Learning MBA 633

Royal Holloway,

University of London UK MBA in International Management 609


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ONLINE MBA 2009 LISTING

School name Principle country Programme name Number of enrolled

online MBA students

Babson College: Olin US Fast Track MBA 577

Durham Business School UK MBA 511RDI - Resource Development

International UK University of Wales MBA at RDI 481

Open University Business School UK MBA (Technology Management) 400

Arizona State University: Carey US MBA - Online 365

Imperial College Business School UK MBA (Distance Learning) 360

Thunderbird School Global MBA for

of Global Management US Latin American Managers 335

SBS Swiss Business School Switzerland MBA Program 324

Oxford Brookes University UK Global MBA 318

University of Texas at Dallas US Global MBA On-line 293

Syracuse University:Whitman US iMBA 250

University of Strathclyde

Business School UK Strathclyde flexible learning MBA 250

RMIT Australia MBA (Executive) 217

George Washington University US Health Care MBA 198

IE Business School Spain International Executive MBA 197

University of Nebraska-Lincoln US UNL Distance MBA 182

University of Florida: Hough US Internet 2-year MBA 180

Thunderbird School

of Global Management US Global MBA - On Demand 162

IE Business School Spain Global MBA Online 161

Open University Business School UK MPA

(Master of Public Administration) 150

Manchester Business School UK MBA for Construction Executives 146

Aberdeen Business School UK eMBA 125

Drexel University: LeBow US MBA Anywhere 109

University of Florida: Hough US Internet one-year MBA 109

Open University Business School UK MBA (Life Sciences) 100

Isead Spain MBA 99University of Maryland University College US Executive MBA 97

University of Surrey School of Management UK MBA 88

Aston Business School UK Distance-Learning MBA 80

Isead Spain Executive MBA 74

Drexel University: LeBow US MBA in

Pharmaceutical Management 72

Euro*MBA Consortium Netherlands Euro*MBA 72

Aberdeen Business School UK MBA Oil and Gas Management 6 7

Thunderbird School MBA Dual Degree with Indiana

of Global Management US University and Thunderbird 51

Durham Business School UK MBA (Finance) 12

George Washington University US The World Executive MBA n/a***


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Appendix 3: Citation analysis of the world top 200 Business schools in 2005

World Top 20 in the World World Top 20 in Europe World Top 20 in the UK World Listing for ScotlandRank Rank Rank Rank

1 USA - Univ. Penn 17 UK - London 17 London 163 Univ. Strathclyde

Business School Business School

2 USA - Harvard Univ. 18 Netherlands- Univ. Erasmus 36 Univ. Manchester

3 USA Michigan,Ann Arbor 25 France - INSEAD 42 Univ. Nottingham

4 USA - Stanford Univ. 27 Netherlands -Univ. Tilburg 57 Oxford Uni.

5 USA - Duke Univ. 36 UK - Univ. UK Centre forManchester 75 Economic Policy Research

6 USA - New York Univ. 42 UK - Univ.Nottingham 105 Univ. Cambridge

7 USA - National Bureauof Economic Research 57 UK - Oxford Univ. 106 Univ.Warwick

8 USA - Univ.Texas,Austin61 Belgium -Catholic Louvian 110 Univ. London L.S.E.

9 USA Univ. Chicago 65 Netherlands -Gronigen Univ. 118 Univ. Cranfield

10 USA - Northwestern UK Centre forUniv. 75 Economic Policy

Research 120 City Univ.

11 USA - Univ. Maryland Netherlands -College Park 79 Maastricht 136 Univ. Lancaster

12 USA - Univ. Minnesota 84 Belgium -Univ. G hent 154 Univ. Aston

13 USA - Univ. Southern Denmark - 161 Univ. De MontfordCalifornia 93 Copenhagen

Bus. Sch.

14 USA -Texas A&M Uni. 105 UK - Univ.Cambridge 163 Univ. Strathclyde

15 USA - Indiana Univ. 106 UK -Univ.Warwick 169 Univ. Birmingham

16 USA - Columbia UK - Univ.Univ. NY 110 London LSE 182 Univ. Reading

17 UK - London Netherlands -Business School 114 Eindhoven 185 Univ. Bath

18 Netherlands - Italy - BocconiUniv. Erasmus 117 Univ. 193 Univ. Leeds

19 USA - M.I.T 118 UK - Univ.Cranfield 198 Univ. Loughborough

20 USA - Univ.Calif Los Angeles 120 UK - City Univ. 202 Univ. Leicester

Note: Rankings are based on citation weighted counts of Journal Publication Share Figures. Source:V.Mangematin, C. Baden-Fuller, Global Contests in the production

of Business Knowledge, Long Range Planning (2007), doi:10.1016/j.lrp.2007.11.005


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Appendix 4: Postgraduate and Undergraduate student numbers in business related subjects

ALL POSTGRADUATES BY INSTITUTION AND SUBJECT OF STUDY, 2006-07(Source: HESA 'Students in Higher Education Institutions 2006/07')

Institution Economics Business Management Finance Accounting Marketing Human Tourism Totalstudies resource transport

management & travel

Total UK 7,080 38,950 31,295 9,705 3,190 7,665 11,145 2,285

Total Scotland 10.0% 13.3% 5.9% 10.5% 14.7% 11.7% 14.1% 15.8%

Total England 86.7% 81.8% 83.1% 86.5% 79.2% 82.4% 79.8% 74.0%

Total Wales 2.3% 4.2% 9.4% 2.3% 3.9% 5.0% 4.2% 8.5%

Total Northern Ireland 1.0% 0.6% 1.5% 0.7% 2.4% 0.9% 1.8% 1.8%

The University of Aberdeen 10 - 190 80 15 40 15 - 2.8%

University of AbertayDundee - 110 - - - - - - 0.9%

Bell College - - - - - - - - 0.0%

The University of Dundee 20 130 - - 100 - - - 2.0%

Edinburgh College of Art - - - - - - - - 0.0%

The University of Edinburgh 100 260 160 50 - - - - 4.6%

Glasgow CaledonianUniversity - 240 145 180 35 40 235 10 7.1%

Glasgow School of Art - - - - - - - - 0.0%

The University of Glasgow 270 70 370 160 55 - - 5 8.6%

Heriot-Watt University 15 1,980 190 25 75 50 20 - 19.0%

Napier University - 290 100 65 160 170 230 80 8.8%

The University of Paisley 10 130 75 80 - 80 - - 3.0%

Queen Margaret University,Edinburgh - 30 10 - - - - 80 1.0%

The Robert GordonUniversity - 675 90 115 - 145 230 50 12.1%

The Royal Scottish Academyof Music and Drama - - - - - - - - 0.0%

The Universityof St Andrews 145 405 - - - - - - 4.4%

Scottish Agricultural College - - 5 - - - - - 0.0%

The University of Stirling 15 130 400 195 10 160 65 - 7.9%

The Universityof Strathclyde 115 740 120 75 20 205 785 65 17.2%

UHI Millennium Institute - - - - - - - 65 0.5%

The City University 185 410 675 1,990 25 80 - 325

Cranfield University - 1,130 55 - - - - -

University of Durham 65 815 195 510 - 65 50 -

Imperial College of Science,Technology and Medicine 5 525 - 265 - - - -

The University of Lancaster 80 950 - 90 105 55 - -

London Business School - 1,070 - 420 - - - -

London School of Economicsand Political Science 335 - 210 - 375 - 180 -

The University of Manchester 175 1,250 205 125 100 35 135 -

The University of Oxford 470 315 95 - - - - -

The University of Warwick 225 3,345 450 185 - 45 90 -

Cardiff University 130 650 - 75 30 45 - 150


22/22


ALL FIRST DEGREES BY INSTITUTION AND SUBJECT OF STUDY, 2006-07Source: HESA 'Students in Higher Education Institutions 2006/07')

Institution Economics Business Management Finance Accounting Marketing Human Tourism Totalstudies resource transport

management & travel

Total UK 22,545 69,020 32,070 9,050 21,920 14,050 3,585 9,340

Total Scotland 7.4% 8.5% 8.0% 13.5% 12.9% 8.8% 13.5% 17.7%

Total England 88.3% 83.6% 86.1% 79.1% 79.5% 85.6% 77.8% 77.6%

Total Wales 2.9% 5.0% 2.9% 2.8% 4.5% 2.7% 2.8% 3.2%

Total Northern Ireland 1.4% 2.8% 3.0% 4.7% 3.1% 2.9% 5.9% 1.6%

The University of Aberdeen 210 - 300 115 150 - - - 4.4%

University of Abertay Dundee 5 495 - - 85 - - - 3.3%

Bell College - 125 75 - 115 - - - 1.8%

The University of Dundee 140 35 10 35 325 35 - - 3.3%

Edinburgh College of Art - - - - - - - - 0.0%

The University of Edinburgh 355 615 55 - 130 - - - 6.6%

Glasgow CaledonianUniversity - 585 565 345 350 230 - 470 14.4%

Glasgow School of Art - - - - - - - - 0.0%

The University of Glasgow 235 165 165 45 295 - - 5 5.2%

Heriot-Watt University 100 480 325 50 270 40 15 - 7.6%

Napier University 5 925 5 270 260 185 95 300 11.6%

The University of Paisley 5 345 100 40 190 140 90 110 5.8%

Queen Margaret University,Edinburgh - 150 60 - - 80 - 430 4.1%

The Robert Gordon University 5 795 85 - 270 - - 185 7.6%

The Royal Scottish Academyof Music and Drama - - - - - - - - 0.0%

The University of St Andrews 270 205 - - - - - - 2.7%

Scottish Agricultural College - - 95 - - - - - 0.5%

The University of Stirling 135 340 415 75 190 155 75 40 8.1%

The University of Strathclyde 195 505 305 245 200 380 210 115 12.3%

UHI Millennium Institute - 120 - - - - - - 0.8%

The City University 285 360 205 935 80 - - 50

Cranfield University - - - - - - - -

University of Durham 445 290 10 405 95 - - -

Imperial College of Science,Technology and Medicine - 300 - - - - - -

The University of Lancaster 235 910 - 55 320 255 - -

London Business School - - - - - - - -

London School of Economicsand Political Science 630 - 280 205 410 - 45 -

The University of Manchester 840 490 895 380 340 75 25 -

The University of Oxford 440 - 165 - - - - -

The University of Warwick 815 335 475 210 210 - - -

Cardiff University 290 880 - 65 370 - - -

The Royal Society of Edinburgh (RSE) is Scotlands National Academy. It is an independent body with a

multidisciplinary fellowship of men and women of international standing which makes it uniquely placed tooffer informed, independent comment on matters of national interest.

The Royal Society of Edinburgh, Scotlands National Academy, is Scottish Charity No. SC000470