Dean Martin Wallin On Business Education Headwinds

 

It’s getting harder to ignore the storm clouds gathering over business schools. Across much of higher ed, declining birth rates mean fewer students, and with less public funding to go around, many schools are being forced to raise tuition or cut back. For business schools, the pressure is especially intense.

Students are weighing the high cost of a degree against cheaper, faster alternatives—from company-run training programs to online certifications. Financial aid is drying up, student debt keeps climbing, and suddenly a business degree starts to look less like a smart investment and more like a luxury.

So where does that leave traditional business schools? Are they heading for a financial reckoning?

To find out, we spoke with seven business school deans outside the U.S. and asked them what they see ahead—and how they’re preparing for it. In this interview in our series, we asked Martin Wallin, Dean of Jönköping International Business School in Sweden, for his thoughts. He became dean of the school in August of 2024. Wallin has served as a professor of innovation management at the Chalmers University of Technology, where he has taught for nearly a dozen years. He has also been a faculty member of ETH Zurich for more than 18 years.

P&Q: With declining birth rates and a shrinking college-age population, many business schools are facing an existential enrollment crisis. How is your institution adapting to this demographic shift, and do you foresee program closures, mergers, or a complete overhaul of the traditional MBA model?

Martin Wallin: Let me begin by making some general remarks and then turn to Jönköping International Business School (JIBS) specifically. The notion that business schools could merely depend on a constant influx of young individuals is over. That model is no longer viable. Fewer students are pursuing the traditional route, and even those who are questioning whether they require a full-time business degree or if they can obtain what they need more quickly, affordably, and flexibly.

So, schools must reconsider whom they serve. The future revolves around lifelong learners, individuals already in their careers who need to continue up-skilling. It concerns working professionals who cannot afford to spend two years in a classroom. It also involves
international students seeking a globally recognized degree, but requiring it to be delivered in a manner that aligns with their reality.

P&Q: Will some schools merge or close programs?

Wallin: Probably. But the clever ones are evolving. They’re designing shorter, more focused programs. They’re establishing partnerships with companies. And they’re discovering ways to remain relevant in a world where a business education isn’t merely a one-time event; it’s something you revisit throughout your career.

At JIBS, we largely rely on government funding, and thus, the declining birth rates will likely It didn’t hit us as a sudden punch. But the declining birth rates will probably still affect us. First, government funds will probably not expand for this very reason, meaning that any growth ambition will be affected. Second, growing fee paying students to compensate for declining per-student government revenue will become more challenging. At JIBS, we are preparing in several ways. First, a relentless focus on offering what students need and want, not limited to content and skills, but likely offering shorter modules in line with what students can afford and combine with a professional career. Second, a stronger focus on efficiency and flexibility.

We need to develop ways to update our program content much faster and cut content and programs that are too costly and don’t deliver according to market demand.

P&Q: State and federal funding for higher education has been steadily declining, forcing many institutions to increase tuition or cut programs. Given the growing skepticism about the ROI of expensive business degrees, how sustainable is the current financial model of business schools?

Wallin: It’s becoming increasingly difficult to justify the traditional business school price tag. A few decades ago, an MBA was practically a guaranteed ticket to a high-paying job. Now, students are examining the numbers and asking, “Is it worth it?” The schools that endure will be those that demonstrate their worth. This doesn’t simply refer to excellent professors and a robust alumni network; it signifies tangible career outcomes. If you are charging a lot for a degree, your graduates had better secure outstanding jobs, establish successful businesses, or achieve significant career advancements.

Tuition increases can no longer be the default response. Schools must explore alternative avenues to generate revenue. This involves offering executive education, forging corporate partnerships, and even reassessing how they deliver education, perhaps by breaking degrees into smaller, more affordable segments that individuals can undertake gradually.

The bottom line is that students are treating this like an investment. Schools that can show a
return will be fine. The ones that can’t will struggle.

P&Q: Rising tuition costs, reduced financial aid, and increased student debt, risk making business education a privilege for the few. How can business schools ensure accessibility and diversity in a sector where affordability is becoming a major barrier?

Wallin: If we do not solve this issue, we will end up with a system where only the wealthy can afford a business education. This is detrimental to students, schools, and society as a whole.

We discuss diversity and inclusion frequently, yet if tuition continues to rise, those words hold little weight. The truth is that business schools must establish more pathways rather than just one costly entry point. This involves providing more scholarships, of course, but also thinking more broadly by offering shorter, more affordable qualifications, making education more adaptable so students can work while they learn, and cultivating corporate partnerships where companies assist with the expenses.

Schools also need to stop viewing the traditional, full-time MBA as the gold standard. It’s a great option for some, but for many, it’s simply not realistic. The future of business education must be more flexible, modular, and accessible. Otherwise, we risk excluding some of the best and brightest minds simply because they can’t afford the cost.

P&Q: With corporations investing more in internal training, online certifications, and alternative education models, do you see a future where traditional schools can be outcompeted by industry-led education? How are you preparing for this shift?

Wallin: It is already happening. Companies are stating, “Why send our employees to business school when we can train them ourselves?” Tech firms are launching their own certifications. Platforms such as Coursera and LinkedIn Learning are providing high-quality business education at a fraction of the cost.

Business schools face two options: resist this trend or embrace it. Those who stubbornly assert, “No, we’re the only place you can obtain an excellent business education,” are at risk. In contrast, those that evolve—collaborating with companies, incorporating real-world business challenges into the curriculum, and providing shorter, skills-based courses—will prosper.

Business schools continue to hold credibility. They provide research-driven education, alumni networks, and a structured learning environment. However, if they do not evolve and engage with students on their terms, they risk being left behind. But we should not dismiss our greatest asset: we are experts in developing excellent learning opportunities. This is our greatest competitive advantage. A company that makes automobiles will never get the same executive focus on teaching and learning that a business school has (should have). A JIBS we are preparing by having an honest conversation about our purpose: to educate the next generation of leaders and equip them with the skills needed to succeed in their careers. I hope this purpose will be embedded in all courses and programs we offer.

P&Q: Given the combined pressures of demographic decline, decreasing public funding, rising costs, and corporate alternatives, do you believe the business school sector is heading toward a financial crisis? If so, what bold structural reforms do you think are necessary to ensure its survival?

Wallin: It’s not quite a crisis yet, but we are at a pivotal moment. Schools that do not adapt will struggle. The traditional model—high tuition, full-time degrees, and a continuous flow of students—no longer suffices. Institutions must diversify, establish new revenue streams, and offer more flexible education options.

One of the most significant changes that needs to occur is the division of degrees into smaller, stackable credentials. Not everyone can afford to commit two years and the expensive tuition for an MBA. However, they may be able to undertake a series of shorter programs over time. Additionally, institutions must forge deeper partnerships with employers to collaboratively create programs that ensure graduates possess the precise skills that companies require. The educational sector could be inspired by open-source software development, where many actors can contribute to functional and attractive software. In such a system, we can reach an ever stronger division of labor between schools, increase the reuse of courses, and allow students to study on their own terms. The role of the business school would indeed be quite different in such a world. But it would be exciting!

And let’s not overlook technology. Digital education isn’t a passing trend—it’s the future. Schools that adopt online and hybrid learning, while upholding the high standards associated with traditional business education, will be well-positioned. Schools that adapt will emerge from this stronger than ever. Those that do not? They will be the ones confronting a genuine crisis.

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