The value of the PhD degree in management science

Abstract

There is no doubt that a PhD Degree is valuable, but its value is important from the perspective of university management, so measuring it using monetary theory is a useful way to illustrate and increase university outcomes. Universities generate and create value for stakeholders, but what actual value is generated by these highest university degrees? Furthermore, is the concept of value for measuring PhD degrees unique? The theory of value is more than 300 years old, but there is still a gap in the literature in terms of monetising entities’ actions. There are a number of options which depend on what criteria are used to monetise value, including cost, price, opportunity costs and future benefits. We carry out a Delphi analysis based on 20 Management Science Experts, establishing consensus as the basis. We seek to contribute to the subjective theory of value in which value depends on users’ perspectives. Our findings reveal first that it is indeed possible to monetise the value of a PhD degree and second that views of the concept of value differ and therefore so do the actual values. One final conclusion is that not only is it necessary to establish the value of such degrees but also to identify how to factor that value into the strategic plans of universities. This means that the criteria used need to be clarified, because when measuring and monetising a PhD degree properties are less important than individual views in achieving the desired objectives.