The first MBAs were awarded at Harvard University in 1908 with the aim of inculcating the skills necessary for a scientific approach to management in an industrialised world. MBAs still have a mystique in the minds of prospective recipients - perhaps because their attainment is deemed a sure path to a high salary and an executive career at a Fortune 500 corporation.
American and European programmes are still generally regarded as stepping stones to vast recompense and prestige among Hong Kong students, but perceptions are changing. With ample respectable MBA programmes at the University of Hong Kong, Hong Kong University of Science and Technology (HKUST) and Chinese University (CUHK), it is debatable why local students need to venture abroad for further schooling.
Ultimately, MBA decisions are driven by reputation and one's intended career path. "Reputation of the school is the single most important criterion worldwide for MBA programme selection," said Steve DeKrey, director of HKUST's MBA programme.
Location - which market is served - is also worth considering. In the booming 1980s and 1990s, Western countries had an edge on location because MBA job opportunities were abundant.
History and reputation generally favour Western programmes for prestige, owing to the degree's provenance. However, while there is some reputational advantage for local students to attend overseas institutions, Asian schools have grown in quality and reputation.
Prestige is often driven by rankings that have been dominated by United States and European business schools for many years. Yet in recent times - and accelerated by the global economic crisis - all eyes are on growth regions such as China.
"There is now greater importance placed on MBA programmes delivering geographic advantage and regional relevance," said Gopika Spaenle, associate director for admissions and marketing at INSEAD's Singapore campus.
"There are excellent schools in China such as CEIBS and HKUST. It's a benefit to our British students to attend such institutions, even if just for a term, for the perspective gained," said Nigel Banister, chief executive of Manchester Business School Worldwide (MBS).
Students should not fixate on prestige, though older programmes do carry more brand equity and consequently a larger alumni network which could affect post-graduation earnings and ease of employment.
"The alumni network of an established institution, such as MBS, Harvard or Duke, is infinitely more useful than a newer school's, which probably won't have as many of its graduates in senior managerial or executive positions," Dr Banister said.
Locally, international students accounted for 85 per cent of HKUST's intake and its applicant pool grew 30 per cent last year, said Dr DeKrey, who added that HKUST's MBA programme was ranked in the top 20 in global rankings by the Economist Intelligence Unit and the Financial Times.
More than 92 per cent of the University of New South Wales' Australian Graduate School of Management (AGSM) 2008 MBA graduates received job offers or were employed within three months of graduation, with an average salary of A$142,988 (HK$917,112) - a 53 per cent increase on their pre-MBA salaries. However, many factors determine income - not just degree and school.
"Many of our graduates report triple-digit percentage growth in earnings a few years following their MBA. Combined with developing a lifelong and highly valuable international network, the AGSM MBA delivers a significant short-term and long-term return on investment," said Brett Cunningham, AGSM's Hong Kong MBA associate director.
Prestige and higher earnings aside, studying overseas can provide an international, multicultural perspective and post-graduation network when one's peers come from diverse countries.
"That's useful if you envision yourself doing business overseas or working for an MNC [multinational corporation]," said Dr Banister, adding that MBS has more than 130 nationalities among its student body and offers a European perspective - a huge selling point for those seeking to do business in the European Union.
As for AGSM's full-time MBA programme in Sydney, 29 nationalities are represented in the study body, with 60 per cent of students coming from abroad. "It's an international network which our graduates benefit from for life," Mr Cunningham said.
While there are good schools locally that can provide a sound entrepreneurial grounding, Mr Cunningham believes Hong Kong students gain substantively from attending foreign institutions such as AGSM.
"The benefit is learning from an internationally educated faculty which shares its research and professional experience gained both in Australia and from its diverse origins around the world. This helps Hong Kong students gain a global view on best business practice, while the experience also makes AGSM MBA students more attractive to employers in the local and the global job market," Mr Cunningham said.
He added that feedback from alumni and Hong Kong-based recruiters suggested a preference for candidates holding international MBAs because such "companies have regional and international operations and see that our graduates have the global business knowledge, cultural awareness and mobility that are better suited to their business needs".
While an international perspective is worthwhile, Dr Banister does not feel that those whose futures are with national or local companies are necessarily well served by paying more to pursue a prestigious international MBA. "You pay a premium, but in the long term your return on investment may not meet expectations," he said.
Top-tier overseas degrees are typically far more expensive than comparable Hong Kong programmes. For example, the total cost for Northwestern University's Kellogg School of Management two-year MBA is US$150,000.
However, Kellogg's dean Dipak Jain believes "it is an investment worth making that will pay far-reaching, long-term dividends". But he concedes that not everyone can afford such a price tag, hence alternatives have cropped up worldwide to cater to different price points.
Rolf Cremer, dean of Shanghai-based CEIBS, concurred. "Any investment in high-quality education is an investment for life and, without any doubt, the best rational investment a person can make," he said. One of his favourite sayings is: "In some cases, there is no substitute for being there."
Owing to the cost of overseas programmes, Lawrence Chan, administrative director for marketing and student recruitment at CUHK, believes students should thoroughly research programmes to ascertain what they will gain.
"Ask what you will learn and if it's worth the cost - other than just having a prestigious logo on your degree," he said.
Moreover, the cost of living in Europe and the US could be higher than in Hong Kong, especially as students would face the burden of rent, Ms Spaenle said. When overseas, you might not have support networks and being in a foreign country can be daunting.
