By Dr. Vlad Krotov
Globally, AACSB accreditation is the most prestigious quality mark. It may take many years of concentrated effort and substantial financial investment to achieve AACSB accreditation. Before embarking on this accreditation journey, many business schools wonder whether their investment will yield a tangible return, especially in terms of student enrollment.
Several studies have attempted to link AACSB accreditation to various measures of business school performance, including student enrollment. Cameron et al. (2023) find that receiving AACSB accreditation elevates a school’s ranking, potentially attracting more students. Additionally, Ito (2022) suggests that AACSB accreditation can increase graduate student enrollment, particularly for teaching-oriented business schools. This notion is challenged by the study by Doh et al. (2018), indicating that HBCU business schools do not always get more enrollment through AACSB accreditation.
It can be argued that the results are mixed because it is difficult to develop a solid, longitudinal design that ties AACSB accreditation to school performance. There are many benefits of AACSB accreditation (Ito, 2022) but it is not the only variable that affects a business school’s performance. Other forces, such as demographic trends or competition, affect enrollment much more than accreditation in some markets.
Additionally, our experience indicates that accreditation efforts can have many negative effects in the short term. Having AACSB accreditation can, for example, lead to faculty attrition (because some faculty members may not wish to adhere to higher research standards or be involved in general quality improvement) or even to a drop in student enrollment (since some students prefer schools with lower academic standards where they can earn degrees more easily). According to Cameron et al. (2023), schools pursuing AACSB accreditation have “flatter undergraduate enrollment” than those not pursuing it.
It can be argued that AACSB accreditation is largely about creating and implementing a long-term plan for improving a business school. It’s a unique journey business schools choose to take. It’s hard to predict with certainty whether this journey will result in higher enrollment. The opposite outcome is quite possible. Dumond and Johnson (2013) suggest possible drawbacks or challenges associated with AACSB accreditation processes, such as limiting business schools’ ability to adjust to change. In some cases, business schools can make a strategic mistake by abandoning their current market in favor of one in which they have no advantage.
These errors in strategic planning, something that no business school is immune to, are likely to lead to lower enrollment. Peer Review Teams will often notice that a school lacks healthy enrollment and a viable financial position and require the school to address both. Unfortunately, not every business school can be successful at implementing these strategies, even with oversight from AACSB.
References
Cameron, M., McCannon, B. C., & Starr, K. (2023). AACSB accreditation and student demand. Southern Economic Journal, 90(2), 317-340.
Doh, L., Prince, D., McLain, M., & Credle, S. (2018). The impact of the AACSB accreditation on enrollment growth at HBCU(historically black colleges and universities) business schools. Pressacademia, 5(2), 130-141.
Dumond, E. J., & Johnson, T. W. (2013). Managing university business educational quality: ISO or AACSB?. Quality Assurance in Education, 21(2), 127-144.
Ito, H. (2022). Competing through international accreditation: cost-benefit analysis and process of AACSB for a business school in Japan. International Journal of Educational Management, 36(7), 1380-1393.