Factors determining success in a graduate business program

College Student Journal, Sept, 2002 by Andrew W. Braunstein

This study uses correlation and regression techniques to determine which variables are most closely related to the academic success of the recent graduates of a college's MBA program. The factors traditionally used by the MBA program as the primary determinants of admissions decisions--undergraduate grade point average and GMAT score--have the strongest positive correlations with graduate grade point average. Other variables of statistical significance include gender, type of undergraduate degree obtained, and years of work experience. The last factor is discussed in light of a recent proposal to waive the GMAT requirement for certain MBA applicants.

Introduction and Literature Review:

In recent years, a number of studies have been conducted which examine the academic performance of students enrolled in Master of Business Administration (MBA) programs. Most of the research has utilized data from single institutions, with the goal being to analyze which factors are most closely related to academic success, as measured by graduate grade point average. The current study makes use of data on recent graduates (1997-2000) of the MBA program at a medium-sized comprehensive private college in the New York metropolitan area. The roles of the traditional admissions decisions factors--undergraduate grade point average and Graduate Management Admissions Test (GMAT) score--in predicting graduate academic success are examined. Other variables included in the analysis are type of undergraduate degree obtained, undergraduate institution, gender, and years of work experience. Special attention is paid to the impact of the last variable.

Ahmadi, Raiszadeh, Farhad, and Helms (1997) examined the relationship between graduate GPA and a number of factors for a sample of 279 students enrolled in an AACSB-accredited MBA program. Using bivariate regression models, they found that undergraduate GPA and GMAT scores were significant variables in predicting academic success. They suggested, however, that the admissions process should also take into account non-quantitative measures or assessments such as writing samples and interviews. Wright and Palmer (1997) applied analysis of variance techniques (using a sample size of 201) to examine whether GMAT scores, undergraduate GPA, and age were statistically significantly different among groups of graduate students they had classified as high risk, questionable, or no risk based on their current graduate grade point averages. The authors concluded that the use of total GMAT scores in the admissions process may be misleading, and that admissions personnel may want to pay more attention to the specific verbal and quantitative components. Carver and King (1994) analyzed data for 467 students in an off-campus MBA program. They found that GMAT scores, undergraduate grade point average, and work experience were the best predictors of academic success. For students admitted as special exceptions, undergraduate institution and undergraduate major were found to be among the best predictors of graduate school grades. Arnold (1996) studied the academic performance of 126 individuals from an executive MBA program. He found that GMAT scores were the best indicator of academic success, but that including certain qualitative factors improved the overall fit of the model.

Whereas the works cited above took a number of independent variables into account, some studies have focused on the relationship between graduate academic performance and a single factor. Palmer and Wright (1996) specifically examined the relationship between age and performance in a graduate business program. They found that age was not statistically significant when the entire sample of students was taken into account. However, it was a significant factor for individuals who scored poorly on the verbal portion of the GMAT and for those in the upper portion of the age distribution. Schumacher et al. (1993) dealt with issues of computer and math anxiety as they related to MBA students, and calculated correlations between MBA grades and specific computer experiences and attitudes. Hancock (1999) concentrated on the issue of gender, comparing the performance of men and women on the GMAT relative to their academic performance in an MBA program. He found that the women in the sample performed significantly lower on the GMAT than did the men. However, there was no significant difference in graduate GPA between the groups. Thus he concluded that admissions personnel need to exercise caution when relying on GMAT scores in their admissions decisions. Adams and Hancock (2000) examined the relationship between years of work experience and MBA grade point average for a sample of 269 graduates from an urban university whose MBA program has a strong emphasis on entrepreneurship. They found that work experience was more closely correlated with academic success than were either GMAT score or undergraduate grade point average.

A number of the studies discussed above point out that each graduate business program should conduct its own empirical study, examining possible relationships between the academic performance of its students and any factors of interest. Given individual differences in MBA programs (in terms of location, percentage of fulltime students, most popular majors, etc.), the variables that are statistically significant in predicting academic success likely vary from one institution to another. Admissions personnel can develop their particular institutional requirements so as to admit those students with the best chance to succeed.