The purpose of this paper is to argue that recent changes in the wider contexts of universities and business schools signal a shift in their business model instead of a mere turn in their business cycle.
The paper reviews the position of those that hold a traditionalist view of the business model of business schools and comments on the extent to which such a model applies to the ever‐changing conditions that are a feature of the environment of institutions of higher learning.
The paper argues that the process of globalization augments the effects of five sector‐specific forces on the business model of business schools. Additionally, the paper identifies some structural factors that business schools might wish to address in order to cope with changes occurring in their wider environments.
In addition to structural measures, the paper proposes a number of specific actions that business schools may implement to maintain and/or gain competitive advantage.
