Determining the value of undergraduate business programs from market vs academic perspectives

Abstract

Purpose The purpose of this paper is to generate an understanding of the value-added to students enrolled in selected undergraduate business programs from an academic and market perspectives. Although there are numerous studies that rank undergraduate colleges and universities, the selection of the “best value” undergraduate business program is a formidable task for prospective students. This study uses data envelopment analysis (DEA), a linear programming-based tool, to evaluate undergraduate business administration programs. The DEA model connects costs (inputs) with benefits (outputs) to evaluate the value-added to students by undergraduate business programs from a market as well as academic perspectives. The study’s findings should assist prospective students in selecting business programs that provide the best value from their individual perspectives. The results can also help schools to identify their corresponding market niche and allocate their recourses more effectively. Design/methodology/approach Use DEA method. DEA was developed by Charnes et al. (1979) to evaluate the performance of multi-input and -output production operations. The analytical and computational capacities of DEA are firmly based on mathematical theory. Findings This study takes a different approach toward the ranking of college programs. Most studies rank-order programs (universities) based on arbitrary weightings of attributes of quality and provide a general ranking of programs that is said meet the needs of many different constituencies including students, parents, donors, administrators’ faculty and alumni. Originality/value This is an original research using DEA and The Bloomberg/Businessweek online data for business school ranking.