Returnee faculty members, network position and diversification strategy: an analysis of business schools in China

Abstract

This paper builds on resource-based and network theories to pose an integrative framework for understanding diversification strategy of MBA curricula in Chinese business schools. Using a data set collected from 41 schools offering MBA degrees, we find that returnee faculty members exhibit a curvilinear effect on curricular diversification. We also find that network centrality moderates the relationship between returnee faculty members and diversification in those educational institutions with insufficient returnee faculty members who can nonetheless achieve synergies by utilizing their network connections. These results not only offer explanations on how organizations in developing countries can overcome limited internal resources disadvantages but also provide specific insights into how business schools in China can offset the challenges of improving their education programmes.