Gift funds new business institute

The Kelley School of Business plans to open a new global business institute thanks to a $4.8 million private gift coordinated by the GEO Global Foundation.
The Institute for Global Organizational Effectiveness will help send MBA and Ph.D students to selected Latin American countries for fellowships, consulting projects and research.

The private gift that will fund the institute is the largest single donation made to Kelley by a non-alumnus.

“The future of higher education demands engagement and collaboration in efforts to foster innovation throughout the world,” said IU Provost and Executive Vice President Karen Hanson in a press release. “The Institute for Global Organizational Effectiveness will be at the forefront of such efforts.”

The institute will provide up to eight fellowships for new MBA students annually, complete with two-year $25,000 annual stipends.

Similarly, Ph.D students will receive a $25,000 annual stipend and a full tuition waiver during the five-year program. Eight of these doctoral fellowships will be awarded by 2019.

Herman Aguinis, dean’s research professor in Kelley’s Department of Management and Entrepreneurship, will direct the institute.

Aguinis said MBA students will participate in consulting projects that might lead to job opportunities. Ph.D students will collect research for publication and presentation and the companies the students work for will benefit from actionable knowledge developed during the project.

Aguinis said the institute’s program will also lead to continued donations to Kelley. However, the program will not function as a strict quid-pro-quo system or commit graduate students to full-time consulting positions.

Instead, the institute will determine the projects students become involved in.
“It is kind of a practicum for students,” Aguinis said.

Dan Smith, dean of the Kelley School of Business, explained why Latin America was chosen as the hub for the institute.

“Latin America is an extremely important part of the world for business and commerce these days, and the Kelley School has been in need of greater connections with that part of the world,” Smith said.

Smith also said the large financial gift will help Kelley “develop its presence in that
region.”

Although the program will be open to any student with an interest in Latin America, special consideration will be given to students who are originally from Latin America or who have direct connections to the region.

“We are particularly happy that this gift will enable us to enroll more students from Latin America or of Hispanic origin,” Smith said.

Aguinis explained that although the institute will be based in Latin America, the strands of interconnected commerce will make the program truly global.

Aguinis said there “is no way to avoid the connection” of other countries, even as students study in Latin America.

“The emphasis is Latin America, but the emphasis overall in the long term is global,” Aguinis said.