The Evolution of Online MBA Programs: Past, Present and Future

Advanced software technology and the internet have transformed graduate education. Gone are the days when traditional learning methods, such as on-site classes, were the only options to pursue a Master of Business Administration (MBA). Today, MBA degree programs allow candidates to access higher ed. online from anywhere and at any time.

This post will explore the evolution of online MBA programs from the early days to the present.

As the United States became industrialized and workers gained new sets of skills in the early part of the 20th century, business owners began to seek out more effective management techniques. Colleges and universities found that teaching business leadership—what we now call business administration—wasn’t a popular choice. As corporations expanded, however, and the need for skilled management continued to grow, the tide changed. There was new value placed on providing formal training in business leadership.¹

The world’s first MBA program was created in 1908, but the history of online MBA programs began in the late 1980s.^1,2 The internet as we know it in its present form was not yet in public use. Business schools used online service platforms like CompuServe that offered email, forums and file-sharing capabilities to administer their programs.

In 1989, the University of Phoenix became the first institution to launch fully online bachelor's and master's degree programs.³ The web proved to be a game-changer because it allowed candidates to learn remotely and enabled three forms of interactivity: Students could directly interact with course content, the instructor and other students—just as they could in a physical classroom.⁴

In 1992, the Sloan Foundation came up with the concept of asynchronous learning networks. The idea was to develop technology that provides education to students who wish to learn at their convenience and from anywhere via the internet. This further fueled the adoption of the “anytime, anyplace” learning approach found in online MBA programs today.^2,5

While some educational institutions embraced the internet to administer MBAs, others were skeptical; they viewed the internet as a technology that wasn’t going to revolutionize the traditional learning methods.⁴ This skepticism slowed down the adoption of e-learning models, but the widespread use of the internet in the late '90s and throughout the 2000s ensured the steady growth of online education.⁶

According to the Association to Advance Collegiate Schools of Business (AACSB), the number of universities offering an online MBA increased by 54% between 2012-13 and 2016-17.⁷ In previous years, there were concerns that online programs lacked quality student-student and professor-student interactions. The adoption of online business education spiked in the 2010s, however, partly because of significant tech advancements that solved this problem.⁷ For instance, modern virtual learning platforms that had interactive technologies like real-time chatting, polling and discussion forums made online MBA programs more immersive and promoted better faculty-student collaboration.^7,8 Additionally, smartphones became widely popular in the late 2000s and early 2010s (their use has grown greatly since then). This provided a mobile learning option: Students could easily access learning materials using a device they could carry anywhere.⁹

The steady growth of online programs has been apparent over the years. However, the adoption rate of online MBA programs increased significantly in 2020 because of worldwide COVID-19 lockdowns.¹⁰ According to Forbes, candidates in the United States who enrolled in online MBA programs in the 2020-21 academic year outnumbered those in full-time, on-campus programs.¹¹ While the shift to virtual classes due to COVID-19 was a necessity, it has become the new normal. A McKinsey survey conducted in November 2021 showed that students and faculty want to continue using the online learning technologies they adopted during the pandemic.⁸

Apart from the pandemic, changes in student demographics are shaping online education today. Instead of containing only traditional college-age students (18 to 24 years) who focus primarily on studying, the new population of learners is comprised of older adults who are caught up in life commitments.¹² Some are parents with childcare responsibilities and/or professionals with full-time jobs. Others simply prefer learning in the comfort of home without the hassle of commuting or relocating to campuses.¹³

As a result, business schools are increasingly adopting online MBA programs to offer the new student demographic the flexibility to take classes anywhere and at any time.¹⁴ The aim is to enable busy, modern candidates to study on their own schedule without interfering with work, family time or any other commitments.

According to McKinsey, the adoption rate of technologies powered by artificial intelligence (AI) in higher education is low. However, more education experts are expected to deploy AI to tailor MBA programs to each student’s learning needs, improve engagement among candidates and reduce the workload of managing online education.⁸

One of the biggest concerns students have with an online MBA is the degree’s credibility when it comes to applying for a job after graduation. The acceptance of online MBAs has risen considerably, according to U.S. News and World Report, and the trend will continue. Whether you earn your degree online or in person won’t matter much. What will matter is whether the institution offering the MBA is accredited by trusted agencies.¹⁵

To advance in pursuit of your career goals, explore the online MBA program from the Leavey School of Business at Santa Clara University. Led by industry experts and designed for working professionals, our flexible online program delivers the foundational business knowledge and principled leadership skills to propel your career, in Silicon Valley and beyond. The online courses equip you with expertise that can open doors to entirely new career paths and make you more competitive for leadership positions. Pursue next-level opportunities without sacrificing your personal life or career trajectory.

You’ll also strengthen your network, connecting with accomplished peers and professionals in your field who can be valuable partners and colleagues after graduation.

To learn more, schedule a call with one of our admissions outreach advisors today.