ABSTRACT
The rise of graduate business schools occurred during a period of enormous growth, followed by dramatic decline in the fortunes of American business. Because so many M.B.A.-educated executives had difficulty managing their companies’ response to dramatic changes in markets and technology, this study examines how business education has influenced managerial attitude and practices. Columbia and Harvard Business Schools were examined to see how, as well as how well, their educational approaches provided managers with the skills, information and confidence to make both entrepreneurial and operational decisions. Both schools effectively prepared their graduates for operational decisions, but did not successfully provide their managers with the skills and knowledge to facilitate entrepreneurial decisions. Moreover, the study also found that American business was not actively engaged in the direction of graduate business education. Thus, the reliance of American business upon graduate business schools may have had consequences for America’s business.
