In recent years, however, there have been increasing signs of a trend reversal. “More and more critical voices have been raised, questioning what kind of social legitimacy business schools still have today,” says Bodo Schlegelmilch from WU Vienna. He is professor emeritus of global marketing strategy and founder of the WU Executive Academy, where he currently also serves as interim dean. In these capacities, he has explored the role of business schools from a wide variety of perspectives – and he is familiar with the various lines of criticism leveled against business schools: For example, critics argue that the curricula are increasingly losing touch with the real business world, that much of their research lacks practical relevance, and that business schools are helping to cement the hegemony of corporations, which makes them complicit in environmental destruction and wealth inequality – a line of criticism that has become more and more prominent during the past few years. “We must take these critical perspectives seriously,” says Bodo Schlegelmilch. “They show that business schools are in need of a strategy renewal.”

In a recent paper published in the renowned Journal of Marketing Education, Schlegelmilch outlines what form this renewal could take. He argues that far-reaching social, technological, and demographic developments make it necessary for business schools to change in order to remain relevant. With a view to the future, it is therefore essential to rethink the strategy of business schools. According to Schlegelmilch’s analysis, business schools can, in principle, pursue three different paths, prioritizing either research, teaching, or social responsibility.

“Most business schools fail to give clear priority to one of these three areas. Instead, they scatter their resources and end up with mediocre results in all three areas,” Professor Schlegelmilch explains. Whether a school prioritizes teaching quality, research excellence, or social relevance depends on the resources and competencies it has at its disposal. Only a few top business schools have the resources to achieve excellence in all three areas.

“For many business schools, there is an urgent need to take strategic action. What we’re currently seeing, however, is that changes tend to happen slowly and gradually, and that they are more symbolic than substantial,” warns Bodo Schlegelmilch. “If business schools fail to clearly define their strategy and their role in society, they will face an even greater legitimacy crisis going forward.”

Detailed study results and further information

Schlegelmilch, B. B. (2024). Enhancing Legitimacy: A Pathway to Strategy Renewal of Business Schools. Journal of Marketing Education, Online First article.

Link to the study