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Reputation and Efficiency: A Nonparametric Assessment of America's Top-Rated MBA Programs

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Listed:
  • Subhash C. Ray

    (University of Connecticut)

  • Yongil Jeon

    (Central Michigan Universit)

Abstract

Widely publicized reports of fresh MBAs getting multiple job offers with six-figure annual salaries leave a long-lasting general impression about the high quality of selected business schools. While such spectacular achievement in job placement rightly deserves recognition, one should not lose sight of the resources expended in order to accomplish this result. In this study, we employ a measure of Pareto-Koopmans global efficiency to evaluate the efficiency levels of the MBA programs in Business Week's top-rated list. We compute input- and output-oriented radial and non-radial efficiency measures for comparison. Among three tier groups, the schools from a higher tier group on average are more efficient than those from lower tiers, although variations in efficiency levels do occur within the same tier, which exist over different measures of efficiency.

Suggested Citation

  • Subhash C. Ray & Yongil Jeon, 2003. "Reputation and Efficiency: A Nonparametric Assessment of America's Top-Rated MBA Programs," Working papers 2003-13, University of Connecticut, Department of Economics.
    • Handle: RePEc:uct:uconnp:2003-13
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    1. Kao, Ling-Jing & Lu, Chi-Jie & Chiu, Chih-Chou, 2011. "Efficiency measurement using independent component analysis and data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 210(2), pages 310-317, April.
    2. Ray, Subhash C. & Ghose, Arpita, 2014. "Production efficiency in Indian agriculture: An assessment of the post green revolution years," Omega, Elsevier, vol. 44(C), pages 58-69.
    3. Kristof De Witte & Laura López-Torres, 2017. "Efficiency in education: a review of literature and a way forward," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(4), pages 339-363, April.
    4. L-J Kao & C-C Lu & C-C Chiu, 2011. "The training institution efficiency of the semiconductor institute programme in Taiwan—application of spatiotemporal ICA with DEA approach," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(12), pages 2162-2172, December.
    5. Aithal, Sreeramana & Kumar, Suresh, 2016. "ABC Model of Research Productivity and Higher Educational Institutional Ranking," MPRA Paper 72333, University Library of Munich, Germany.
    6. Elliott, Caroline & Soo, Kwok Tong, 2013. "The international market for MBA qualifications: The relationship between tuition fees and applications," Economics of Education Review, Elsevier, vol. 34(C), pages 162-174.
    7. Awadh Pratap Singh & Shiv Prasad Yadav & Preeti Tyagi, 2022. "Performance assessment of higher educational institutions in India using data envelopment analysis and re-evaluation of NIRF Rankings," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 13(2), pages 1024-1035, April.
    8. Johnes, Jill, 2015. "Operational Research in education," European Journal of Operational Research, Elsevier, vol. 243(3), pages 683-696.
    9. Aithal, Sreeramana, 2016. "Study on Research Productivity in World Top Business Schools," MPRA Paper 72246, University Library of Munich, Germany.
    10. Chen, Po-Chi & Yu, Ming-Miin & Chang, Ching-Cheng & Managi, Shunsuke, 2014. "Non-Radial Directional Performance Measurement with Undesirable Outputs," MPRA Paper 57189, University Library of Munich, Germany.
    11. Marcel Clermont & Alexander Dirksen & Harald Dyckhoff, 2015. "Returns to scale of Business Administration research in Germany," Scientometrics, Springer;Akadémiai Kiadó, vol. 103(2), pages 583-614, May.
    12. Nikolaidis, Yiannis & Dimitriadis, Sotirios G., 2014. "On the student evaluation of university courses and faculty members’ teaching performance," European Journal of Operational Research, Elsevier, vol. 238(1), pages 199-207.
    13. P Naudé & S Henneberg & Z Jiang, 2010. "Varying routes to the top: identifying different strategies in the MBA marketplace," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 61(8), pages 1193-1206, August.
    14. Köksalan, Murat & Büyükbasaran, Tayyar & Özpeynirci, Özgür & Wallenius, Jyrki, 2010. "A flexible approach to ranking with an application to MBA Programs," European Journal of Operational Research, Elsevier, vol. 201(2), pages 470-476, March.
    15. Subhash Ray, 2007. "Shadow profit maximization and a measure of overall inefficiency," Journal of Productivity Analysis, Springer, vol. 27(3), pages 231-236, June.
    16. Mukherjee, Kankana, 2010. "Measuring energy efficiency in the context of an emerging economy: The case of indian manufacturing," European Journal of Operational Research, Elsevier, vol. 201(3), pages 933-941, March.
    17. Yongil Jeon & Stephen M. Miller & Subhash C. Ray, 2003. "MBA Program Reputation: Objective Rankings for Students, Employers and Program Administrators," Working papers 2003-28, University of Connecticut, Department of Economics.
    18. Mazumdar, Mainak & Rajeev, Meenakshi & Ray, Subhash C., 2012. "Sources of Heterogeneity in the Efficiency of Indian Pharmaceutical Firms," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 47(2), pages 191-221.
    19. Sanjeet Singh & Prabhat Ranjan, 2018. "Efficiency analysis of non-homogeneous parallel sub-unit systems for the performance measurement of higher education," Annals of Operations Research, Springer, vol. 269(1), pages 641-666, October.
    20. Aithal, Sreeramana, 2016. "Innovations in Student Centric Learning – A Study of Top Business Schools in India," MPRA Paper 71742, University Library of Munich, Germany.
    21. Aithal, Sreeramana, 2016. "Study of Annual Research Productivity in Indian Top Business Schools," MPRA Paper 71435, University Library of Munich, Germany, revised May 2016.

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    More about this item

    Keywords

    Data Envelopment Analysis; Pareto-Koopmans global efficiency; Reputation;
    All these keywords.

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • D6 - Microeconomics - - Welfare Economics
    • N3 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy

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