The Hidden Role of AACSB in College Resource Allocation
Joseph Rosetti, Thomas Kopp

Abstract
This paper models how the growing importance of professional education credentialing has enabled business schools to overcome the unwillingness of faculty governance to respond to the changing demands of students. To maintain the financial health of liberal arts colleges in the face of student demand for business education, college administrators expanded staffing in business. However, the governance structure of colleges that retained their liberal arts general education requirement was unable to respond since Business school faculty were unable to achieve a political voice proportionate to the student interests they now represented. After modeling the forces that led to the failure of faculty governance to allocate resources in response to shifts in student demand, this paper develops a theoretical model that links the rise of administrative reallocation of resources and accrediting. Finally, it will explore the empirical support for this hypothesis.

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