1. Chais Conference, Raanana, February 20, 2007 Nitza Geri, Orr Mendelson, David Gefen How to Increase Student Retention in MBA Programs with an Online Element? The Open University of Israel Drexel University Philadelphia Tel Aviv University and The Open University of Israel

2. E-learning and MBA programs E-learning is a social process which substitutes both distance learning and traditional face-to-face education (Alavi & Leidner, 2001; Hiltz & Turrof, 2005) MBA programs seem natural candidates for e-learning: flexibility in terms of time and place of learning E-learning is perceived as increasing student satisfaction in general and especially in distance learning environments (Simpson, 2003; Guri-Rosenblit, 2005; Levy, 2007)

3. Does IT Matter? "We see computers everywhere except in the productivity statistics" (Solow, 1987) Research on "the productivity paradox of information technology" (Brynjolfsson 1993; Brynjolfsson & Hitt 1998; Strassmann 1996( "IT doesn't matter" (Carr 2003(: No competitive advantage Although the paradox doesn’t exist, many IT projects fail to provide their expected benefits (Geri, 2006)

4. Does e-Learning Matter? Universities invest considerable financial, and other organizational resources in e-learning This study takes a managerial perspective: How e-learning impacts student retention and loyalty Previous e-learning effectiveness research: E-learning effect on the learning process (Hiltz & Turoff, 2002) Learners' satisfaction with online activities (Levy, 2006) Comparing alternative distance learning environments (Alavi et al., 2002; Rovai & Jordan, 2004) Technology adoption and continuance of use

5. The Proposed Research Model Satisfaction with supplementary teaching materials H5 CONTROL VARIABLES Courses Taken Average grade Satisfaction with communication services Satisfaction with auxiliary technical e-learning services Student contribution to group e-learning User self reported use Student inclination to withdraw the program Satisfaction with e-learning overall quality Willingness to recommend the program to others H3 H6b H6a H4bH4c H4a H7 H8 H9 H1 H2

6. The Open University MBA Program Started in September 2002 So far, 196 graduates, 59 in 3 years, 137 in 4 years Blended learning model or fully distance 4-6 face-to-face meetings per course Presume extensive use of course websites Student motivation for enrolment is mostly practical Candidates from other disciplines take up to six supplementary courses

7. Methodology Anonymous web survey By e-mail to all 1,916 MBA students 520 responses (27.1%( Partial Least Square (PLS-Graph 3.00) structured equation modeling method that analyzes how the items load on their constructs simultaneously with estimating all the paths in the model (Chin, 1998; Chin, et al., 2003; Gefen, et al., 2000; Gefen & Straub, 2005) Pilot: 45 students Pilot results presented at a Chais Research seminar

8. PLS Results for the Proposed Model Satisfaction with supplementary teaching materials 0.311 CONTROL VARIABLES Courses Taken Average grade Satisfaction with communication services Satisfaction with auxiliary technical e-learning services Student contribution to group e-learning User self reported use Student inclination to withdraw the program Satisfaction with e-learning overall quality Willingness to recommend the program to others 0.185 0.401 0.144 0.1630.116 0.325 0.215 0.162 -0.325 0.269 -0.218 -0.401 0.265 Variance explained in bold All paths are significant at least at p <.05 0.301 0.135 0.327 0.384 0.167

9. Discussion: Withdrawal "Student dropout… is a multi-causal problem that requires multiple partial solutions.“ Woodley, 1987 (Simpson, 2003, p.15) Findings: those who are satisfied with e-learning quality are less inclined to withdraw Students may still quit due to other more profound reasons (Tinto, 1975)

10. Discussion: Willingness to Recommend the Program Findings: students who were more sophisticated and active in their use of e-learning were more willing to recommend the MBA program Practical implications: Nurture an online environment which encourages student contribution Seek ways to amplify student loyalty impact

11. Final Observation "Teachers won't be replaced by technology. Teachers who don't use technology will be replaced by teachers who do.“ David Thornburg "The world is still very much in the early stages of people figuring out how to use Information Technology” Michael Dell, 2004