Table Of ContentMANAGEMENT EDUCATION IN THE NETWORK ECONOMY
MANAGEMENTEDUCATION
INTRE
NETWORK ECONOMY
ITS CONTEXT, CONTENT,
AND ORGANIZA TrON
by
P.J. van Baalen
and
L.T. Moratis
Erasmus University Rotterdam, The Netherlands
SPRINGER-SCIENCE+BUSINESS MEDIA, B.V.
A C.I.P. Catalogue record for this book is available from the Library of Congress.
ISBN 978-1-4613-5259-4 ISBN 978-1-4615-0829-8 (eBook)
DOI 10.1007/978-1-4615-0829-8
Printed an acid-free paper
AII Rights Reserved
© 2001 Springer Science+Business Media Dordrecht
Originally published by Kluwer Academic Publishers, Boston in 200 l
Softcover reprint of the hardcover 1s t edition 200 l
No part of the material protected by this copyright notice may be reproduced or
utilized in any form or by any means, electronic or mechanica1,
including photocopying, recording, or by any information storage and
retrieval system, without written permission from the copyright owner.
Table of contents
Preface by prof.dr. P.H.A.M. Verhaegen IX
Acknowledgments XI
Chapter 1 Introduction
Why this book?
Managing and learning in the 21 st century
Aims of this book and target audiences 4
Composition of this book 5
Bookmark 7
Chapter 2 The new economy
Introduction 9
The new economy and industrial revolution 10
Defining the new economy 11
The macroeconomic view: structural features of the new economy 13
Industrial and occupational change 14
Globalization 14
Dynamism and competition 15
The information technology revolution 16
The role and contribution of ICT: some evidence 17
Technology, information, and new economics 19
ICT and economics 21
Three opinions on the future of the new economy 22
Opinion 1: A 'real' new economy 22
Opinion 2: A technological revolution 24
Opinion 3: An internet bubble 24
Value creation in the new economy: the importance of intangibles as
competitive resources 25
The knowledge-based economy 25
The experience economy 28
The attention economy 30
Final thoughts: towards a network view 31
Chapter 3 The network economy
Introduction 34
Informationalism: the new socio-economic paradigm 35
Network technology, network economics, and network dynamics 37
v
VI T ABLE OF CONTENTS
Network dynamics: richness and reach 40
Definitions of networks 42
Principles and key characteristics of network organization 43
Organizing for flexible value creation: the network enterprise 45
Types of network organizations 48
Final thoughts: the network economy and challenges for education
and business schools 52
Chapter 4 The manager of the 21st century: Management
knowledge, management skills, and the
management curriculum
Introduction 55
The new production of knowledge 56
Rounding out the manager's job for the 21 century 58
st
Traits of the 2151 century manager 59
Competencies and skills 60
Network competencies 61
Role contingency and network roles 63
The network broker 65
Levels of network management and network management capabilities 67
Management knowledge for the 2151 century and the business school
curriculum 68
Transforming management knowledge: changing paradigms 71
Functional fields and subtopics 73
The management curriculum 74
Final thoughts 77
Chapter 5 The new learning
Introduction 79
Features and principles of the new learning environment 80
From teaching to learning: the consequences of a new educational
paradigm 82
The new learning, management knowledge, and management learning 84
Pedagogical implications: 'active' forms of learning 87
Organizing for learning: networks and communities of practice 89
Network learning 90
Education and ICT: why schools should(n't) invest in educational
technology 96
Limitations of ICT 98
Effectiveness of educational technology 99
The effectiveness ofICT-mediated instruction 100
ICT-enabled opportunities 102
The cost-effectiveness of ICT 103
Technology-enabled learning environments 104
Pedagogical models and applications of ICT 106
The objectivist perspective 108
TABLE OF CONTENTS VII
The constructivist perspective 108
Pcdagogical models and educational technology: ICT
strategies 110
Management education and ICT 112
Virtual learning communities 114
Final thoughts 116
Chapter 6 The institutional perspective: Business schools'
markets, organization, and strategy
Introduction: new institutional realities 118
The institutional environment 119
The commercialization of highcr education 120
The internationalization of highcr education 120
Internationalization, accreditation, and brand value 121
A strategy of partnerships 123
Prospering through partnering: examples from networks in practice 126
Type I partnerships 126
Type 2 partnerships 127
PIM and CEMS 127
PRIME 128
Trium Emba 129
Universitas 21 130
London Business School and Columbia Business
School 131
INSEAD and Wharton 131
GeM 132
Type 3 partnerships 133 •
Type 4 partnerships 135
UNext 136
Pensare 136
FT Knowledge, Thomson Learning, Docent 137
Perspectives on knowledge institutions: concepts of universities and
business schools 138
The distributed university/business school 138
The university's core activities 139
Thc role of degree-granting bodics and faculty 141
The virtual university/business school 142
Bricks or clicks 143
Models of virtualization 144
The virtual distributed univcrsity 145
The synolic business school (the challenge of double
integration) 149
The business school as a learning centre 149
The hybrid business school 152
The networked business school 154
Task and objectives 155
Organizational structure 156
Vll\ TABLE OF CONTENTS
Case study of the networked business school: IMD Lausanne 159
About IMD 159
Learning at IMD 161
IMD as a networked business school 161
Final thoughts 163
Chapter 7 Epilogue: the need for strategic academic
leadership
Introduction 166
Strategic academic leadership 167
Managing imbalance: the art of network management 169
References 171
Index 183
Preface
This year 2001, The Rotterdam School of ManagemenUFaculteit Bedrijfskunde is
celebrating its sixth lustrum. In the thirty years of its existence, the School has
evolved into an international business school, focused on the acquisition, transfer
and application of knowledge, with respect to entrepreneurship and management.
Research driven, because we want to pre-act on economical, technological and
societal developments and their impact on management, interdisciplinary and guided
by the future needs of international business. The School has preserved its
distinctive pragmatic identity and has been able to build a solid reputation over the
years. In fact, the School has been among the thirty best business schools worldwide
the past few years.
Our School is very much aware of the power of contemporary developments in its
environment and their possible far-reaching consequences for management
education, ways of learning, composition of faculty and students, and the
organization of business schools. The reality of the network economy is that it is
causing landslide changes in the organization and management of enterprises. More
and more, traditional monolithic firms have become flexible networks of
international outsourcing and comakership. But these changes have their impact also
on management research and education, and for business schools there is an
excellent opportunity to reconfigure organizational arrangements following the same
network logic. That is, why the School took, on the occasion of its thirtiest
anniversary, the initiative to write this book. To show, that we recognize the changes
and the consequences they have for our future activities and organization.
This book reflects on these encompassing developments. It tries to grasp the
essential characteristics and dynamism of what nowadays is called "the new
economy" and introduces the network perspective, in order to integrate the different
characteristics of the new economy into one concept. Furthermore, it presents a
particular vision on the organization of management education and business schools.
On the basis of this vision, the School is actively (re)designing its strategy and
preparing its future programs and activities, in order to play its role in management
research and education in the coming decades.
I am proud to present this book to you. I hope that you will find enjoyment in
reading it and that it will elicit new and innovative thinking regarding the
organization of management education and strategy in business schools.
Prof.dr. P.H.A.M. Verhaegen
Dean Rotterdam School of ManagementIFaculteit Bedrijfskunde
ix
Acknowledgments
More than a year ago, we started to write this book about the implications of the
emerging 'new economy' for management education. At that time, there were hardly
any signs that the new economy would collapse into just a 'normal' economy with
increasing inflation, decreasing economic growth, downsizing of firms, and large
scale lay-offs. The word 'new' covered a wide range of developments and it
appeared to be hard to study these from a single clear perspective. Moreover, what's
new, becomes old.
After a lot of reading and our discussions with experts in the field of management
education and people from business, we found that the network concept fitted the
things we wanted to describe best. We therefore tried to think through the
implications of the rise of an emerging network economy for the demand for new
management knowledge, competencies and managerial roles, the implications for
existing pedagogical views, the use of ICT and network concepts for learning, and
organizational structures of business schools. We have tried to support our view by
empirical research done by leading researchers and institutes, by collecting
examples and cases, by combining innovative ideas we found in literature, and by
discussing with visionary people in the field of management education.
However, this book would not have been written without the support of a number of
people that should be rendered thanks to. We are indebted to Peter Lorange and
Annie Tobias (IMD), Eric Cornuel, Liliana Petrella, Nicola Hijlkema, Gordon
Shenton, and Veronique Roumans (efmd), Walter Baets (Nyenrode), and the
Department of Management Learning at Lancaster University, in particular Stephen
Fox, Mark Easterby-Smith, Vivien Hodgson, and Anthony Hesketh, for their
willingness to contribute and exchange ideas. Paul Verhaegen (Dean Rotterdam
School of ManagementJFacuiteit Bedrijfskunde) and Han van Dissel (Rotterdam
School of ManagementlFaculteit Bedrijfskunde and director of Erasmus Executive
Development) are rendered thanks to for creating the opportunity to write this book.
A word of thanks is also directed towards Jeroen Hoff, Edwin Lau, and Maurits van
der Linde (&Partners Research), for continuous support and for helping to develop
the final manuscript.
Peter van Baalen
Lars Moratis
August 2001
xi
CHAPTER!
Introduction
WHY THIS BOOK?
"It is change, continuing change, inevitable change, that is the dominant factor in
society today. No sensible decision can be made any longer without taking into
account not only the world as it is, but the world as it will be ( ... ). This, in turn,
means that our statesmen, our businessmen, our everyman must take on a science
fictional way of thinking", Russian born US-author Isaac Asimov (1920-1992) was
once quoted. Over time, many things that have been labeled as science fiction have
turned out to become reality - or at least pretty close to reality.
Call it science fictional thinking, scenario planning, or anticipation, what is
important for organizations is to develop a vision on the future - what it may look
like, what its consequences may be, and what the organization's role in this future
may be or should be. Many organizations are faced with this challenge, educational
institutions not in the least. Contemporary economic realities are threatening the
subsistence of education as society has known it hitherto. These challenges apply all
the more to institutions of management education.
This book is about changes and the consequences of these changes in the field of
management education and current realities facing business schools. Business
schools are encountering a lot of changes, challenges, and new demands in both
their internal and their external environment. This book contains both a description
of important trends and developments that are taking place within the context of
management education and a particular vision on these trends, developments,
consequences, and realities: a network vision.
This book takes a broad view on developments in the field of management education
and the (need for) progression of business schools in the network economy. By
means of a network perspective it aims at exploring future directions and roles for
the business school and its activities in order to survive new economic and
competitive realities. As the British philosopher Bertrand Russell proclaimed (1872-
1970): "change is one thing, progress is another."
MANAGING AND LEARNING IN THE 21ST CENTURY
In times of change, it is a soothing and convenient thought to capture the essence of
reality into a single encompassing notion. What, then, is that one feature, concept, or
term that concisely describes what the 21 st century (social-)economic landscape is
