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Why business schools do so much research: A signaling explanation

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  • Besancenot, Damien
  • Faria, Joao Ricardo
  • Vranceanu, Radu

Abstract

Criticism is mounting on business schools for their excessive focus on research and the relative neglect of teaching quality. This paper shows that if students have imperfect information about teaching quality and if business schools differ in their research productivity, the least productive schools would do as much research as the top-tier ones only to manipulate students' expectations. In turn, the most productive schools might resort to excess research in order to signal their type in the eyes of prospective students. Since resources are limited, they also tend to neglect teaching quality. Such a situation is socially inefficient as compared to the perfect information case.

Suggested Citation

  • Besancenot, Damien & Faria, Joao Ricardo & Vranceanu, Radu, 2009. "Why business schools do so much research: A signaling explanation," Research Policy, Elsevier, vol. 38(7), pages 1093-1101, September.
    • Handle: RePEc:eee:respol:v:38:y:2009:i:7:p:1093-1101
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    11. Besancenot, Damien & Faria, João Ricardo, 2010. "Good research and bad teaching? A business school tale," Research in Economics, Elsevier, vol. 64(2), pages 67-72, June.
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    Cited by:

    1. Jellal, Mohamed & Faria, Joao & Elaoufi, Noureddine, 2012. "Endogenous dynamic academic research culture," MPRA Paper 38711, University Library of Munich, Germany.
    2. Stremersch, S. & Winer, R.S., 2018. "Academic Research in Marketing and Business School Health," ERIM Report Series Research in Management 116485, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    3. João Ricardo Faria & Franklin G. Mixon, 2020. "The Peter and Dilbert Principles applied to academe," Economics of Governance, Springer, vol. 21(2), pages 115-132, June.
    4. Naiditch, Claire & Vranceanu, Radu, 2011. "Remittances as a social status signaling device," Research in Economics, Elsevier, vol. 65(4), pages 305-318, December.
    5. Bonaccorsi, Andrea & Belingheri, Paola & Secondi, Luca, 2021. "The research productivity of universities. A multilevel and multidisciplinary analysis on European institutions," Journal of Informetrics, Elsevier, vol. 15(2).
    6. Fouad El Ouardighi & Konstantin Kogan & Radu Vranceanu, 2013. "Publish or Teach ? : Analysis of the Professor's Optimal Career Plan," Working Papers hal-00823514, HAL.
    7. Yushan Hu & Ben G. Li, 2021. "The production economics of economics production," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 30(1), pages 228-255, February.
    8. Besancenot, Damien & Faria, João Ricardo, 2010. "Good research and bad teaching? A business school tale," Research in Economics, Elsevier, vol. 64(2), pages 67-72, June.
    9. El Ouardighi, Fouad & Kogan, Konstantin & Vranceanu, Radu, 2013. "Publish or teach? Analysis of the professor's optimal career path," Journal of Economic Dynamics and Control, Elsevier, vol. 37(10), pages 1995-2009.
    10. Stremersch, S. & Winer, R.S., 2018. "Academic Research in Marketing and Business School Health: Limiters and Improvement Opportunities," ERIM Report Series Research in Management ERS-2019-007-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    11. João Ricardo Faria & Peter F. Wanke & João J. Ferreira & Franklin G. Mixon, 2018. "Research and innovation in higher education: empirical evidence from research and patenting in Brazil," Scientometrics, Springer;Akadémiai Kiadó, vol. 116(1), pages 487-504, July.
    12. Timothy Perri, 2018. "Economics of evaluation (with special reference to promotion and tenure committees)," Economics of Governance, Springer, vol. 19(1), pages 1-19, February.
    13. Richard Startz, 2020. "How Research Goes Astray: Paths And Equilibria," Economic Inquiry, Western Economic Association International, vol. 58(4), pages 1845-1854, October.
    14. Ryazanova, Olga & McNamara, Peter & Aguinis, Herman, 2017. "Research performance as a quality signal in international labor markets: Visibility of business schools worldwide through a global research performance system," Journal of World Business, Elsevier, vol. 52(6), pages 831-841.
    15. João Ricardo Faria & Franklin G. Mixon, 2021. "The Marginal Impact of a Publication on Citations, and Its Effect on Academic Pay," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(9), pages 8217-8226, September.
    16. repec:hal:journl:hal-00823514 is not listed on IDEAS
    17. João Ricardo Faria & Rajeev K. Goel, 2016. "Academic Publication Uncertainty and Publishing Behavior: A Game-Theoretic Perspective," CESifo Working Paper Series 6176, CESifo.
    18. Stefano Bianchini & Francesco Lissoni & Michele Pezzoni & Lorenzo Zirulia, 2016. "The economics of research, consulting, and teaching quality: theory and evidence from a technical university," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 25(7), pages 668-691, October.
    19. repec:jes:wpaper:y:2012:v:4:p:636-647 is not listed on IDEAS
    20. Carmen Anton & Nelu Florea & Silviu-Mihail Tiþã, 2012. "Comparison Of Scientific Socio-Economic Research Performances In Eastern European Universities," CES Working Papers, Centre for European Studies, Alexandru Ioan Cuza University, vol. 4(4), pages 636-647, December.

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    More about this item

    Keywords

    Business schools Research management Research policy Research vs. teaching Signaling Imperfect information;

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions

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