KNOWLEDGE MOBILIZATION BOOK SMARTS vs. STREET SMARTS Do Business Schools Value Business Experience? Dr. David J. Finch, Mount Royal University Bissett School of Business dfinch@mtroyal.ca David Deephouse, University of Alberta Carola Hillenbrand, University of Reading William Foster, University of Alberta Mackenzie Strong, Mount Royal University Norm O’Reilly, Ohio University Loren Falkenberg, University of Calgary (403) 560-0111 Tyler Massie, Mount Royal University BUSINESS SCHOOLS IN CANADA — Today business schools educate one in five university students who have the primary goal to develop the business skills and knowledge to support career success. To be able to do deliver on this, it requires business schools faculty to have the expertise to blend theory and practice. Business school students in Canada of all university students business school students graduates annually = 10 In North America, out of the 1300 PhDs awarded in management annually by universities, only 6% of graduates have any industry experience. PHASE 1: Biographical analysis of business school faculties in Canada SAMPLE DATA Total business schools 13 Total faculty 740 % with doctorate 83 % with previous business experience 43 % actively engaged with business 20 Coding of 740 faculty resumes to examine academic and business credentials and how this influences engagement with different audiences. What type of credentials do business schools have in Canada? faculty with only business experience academic trained with business experience academic trained faculty Engagement based on academic credentials academic trained faculty faculty with business experience only Implications In general, this study demonstrates a significant disconnect between business schools and practice as only 20% of business school faculty are engaged with practice. However, this study demonstrates that academic trained faculty with business experience are able to most effectively engage both academics and business; however, these represent only 23% of business school faculty in study. academic trained with business experience PHASE 2: An analysis of hiring criteria on US business schools DESIGN SAMPLE Based on the findings of phase 1, we studied 625 faculty job postings at 250 US business schools to find out if these postings offer evidence that business schools value business experience. Total US business schools 250 Total faculty job postings 625 % with doctorate 83 % with previous business experience 43 % actively engaged with business 20 What type of credentials do business schools have in the US? research-focused universities 73% 69% 60% comprehensive universities undergraduate teaching universities 19% 30% 48% 2% 13% 17% Other findings 33% 18% 8% 58% 40% 30% Ranking negatively influences a school to recruit faculty with both a doctorate and business experience. Instead, ranked business school seek to recruit research-focused faculty with a PhD and published research but no professional experience. Implications Where from here? This study offers evidence of a significant disconnect in the management of business schools. Study 1, demonstrates that at an aggregate, faculty who possess both a doctorate and business experience out-perform other faculty in measures associated with engagement. However, most business schools (especially research-oriented schools) do not seek to recruit these faculty; instead, schools primarily recruit professors that reflect the current faculty composition. This is one of the first studies that empirically demonstrates the disconnect between performance and credentials at the level of a faculty member. More research must examine further questions about the relationship of faculty credentials and performance. For example, how do faculty credentials predict teaching performance? Original research To view or reference original research, please refer to: Phase 1 Finch, D.;O’Reilly, N; Deephouse, D.; Falkenberg, L.; Foster, W.; Strong, M. (2015). The Effect of Scholars’ Institutional Biography on their Choices of Knowledge Transfer Channels: An Analysis of Canadian Business School Faculty. Academy of Management Annual Conference. Phase 2 Finch, D., Deephouse, D. L., O’Reilly, N., Massie, T., & Hillenbrand, C. Follow the leaders? An analysis of convergence and innovation of faculty recruiting practices in US business schools. Higher Education, 1-19.