Boom in Online MBA Programs at Prestigious US Universities... "Providing More Opportunities"

University of Pennsylvania Wharton School, New York University Stern School of Business, and Others Successively Established
Significant Impact from Decreased Demand for 2-Year General MBA Due to Cost Burden
Concerns Among Students About "MBA Value Depreciation"

[Image source=Pixabay]

[Asia Economy Reporter Kim Sung-wook] Offering online MBA courses at prestigious U.S. universities is becoming a trend. MBA students at the University of Pennsylvania's Wharton School, Georgetown University's McDonough School of Business, and others will be able to take most of their courses online starting next year. New York University's Stern School of Business and the University of California, Berkeley's Haas School of Business also launched online courses this semester.

On the 2nd (local time), The Wall Street Journal (WSJ) reported, "Starting next year, Wharton MBA students can earn a degree worth $223,500 (about 300 million KRW) from their living rooms." Wharton will open online courses for part-time and executive MBA students starting next year. Those who choose this option can attend lectures online for 22 months, including 6 weeks of in-person classes. The degree and tuition fees for the online courses are the same as those for regular students.

This change came as demand for the traditional two-year MBA programs declined due to rising university costs and other factors. The COVID-19 pandemic also highlighted the appeal of flexible location options. Brian Bush, a professor at Wharton, said, "The pandemic has certainly accelerated this across all industries," adding, "In 10 to 20 years, it would be surprising if there are schools that only offer in-person classes and do nothing online." Regarding the tuition being the same, he explained it is "to protect the value of the Wharton diploma."

There had reportedly been resistance to launching online courses for several years. WSJ added, "Part of the appeal of MBA programs for decades has been face-to-face networking." However, a recent survey of over 150 business schools in the U.S. over the past two years found that online MBA programs have enrolled more students than fully in-person programs.

Within campuses, opposition to new online courses still exists. There are concerns that the value of master's degrees earned through traditional in-person classes might be diminished because of online courses. In response, Prashant Malaviya, Senior Associate Dean at Georgetown University's Business School, emphasized, "Although there is still opposition, launching online courses can provide more people with the opportunity to earn a Georgetown MBA."

In South Korea, Sungkyunkwan University was the first to establish an online MBA program, the IMBA, in 2002. Currently, MBA programs centered on online classes are known to be offered by graduate schools at Ajou University and Hankuk University of Foreign Studies, among others. Sungkyunkwan University describes the purpose of establishing the IMBA as "to satisfy the growing desire for learning among working professionals in a globally competitive society and to overcome the time and spatial limitations of offline classes."