The effects of management education upon strategic practice and performance: the case of the German SME machinery and equipment sector

This thesis is concerned with understanding the nature and impact of strategic management education upon management behaviour and performance. Previous research findings are limited, with continuing research being proposed. The aim of this research is to fill respective gaps.The research is carried out in the German machinery and equipment industry sector. This sector was selected because it is of strategic importance for Germany’s economy and it is faced with imminent and ongoing challenges. The research concentrates on small and medium sized companies as these companies dominate this sector. The desk research consists of a comprehensive literature review on the subjects: strategic management, SME community and research sector, previous empirical research results and management education. The field research adopts a quantitative methodology with a survey questionnaire in a cross sectional time horizon. The field research is complemented by six “micro case studies” using qualitative data from the questionnaire and publicly available information.Findings suggest that management education and, in particular, strategic management does not play an important role in German universities. Engineering faculties generally neglect strategic management education in their curricula. Evidence suggests that executives with engineering background have less knowledge in strategic management and generate a lower return on sales than those with business economic background or MBA qualified. From the research findings it can be concluded that German SMEs in the machinery and equipment sector profit from the implementation of strategic management.This thesis closes with recommendations to policy makers regarding management education in Germany and proposals for further research.