EXPERIENTIAL LEARNING ACROSS DISCIPLINES: MIXING INTERNATIONAL BUSINESS AND ACCOUNTING Developments in Business Simulation & Experiential Learning, Volume 27, 2000 EXPERIENTIAL LEARNING ACROSS DISCIPLINES: MIXING INTERNATIONAL BUSINESS AND ACCOUNTING Sharon E. Bossung, SUNY College at Geneseo, Geneseo, NY, 14454 Ken Morse, University of Waikato, Hamilton, NEW ZEALAND ABSTRACT Most simulations and experiential learning exer- cises are anchored in a specific discipline though such disciplinary limitation does not fit well be- yond the academic environment. Therefore, stu- dents must be provided with multi-disciplinary experiences which transcend these artificial cur- ricular boundaries. International business, by both content and opera- tion, requires a truly multidisciplinary perspec- tive. Using the international business course as an initial platform, a capstone planning exercise was developed to expose students to this multi- disciplinary perspective. But the inherent dichot- omy between qualitative and quantitative presen- tation resulted in major difficulties for students, essentially disguising the multi-disciplinary per- spective in a series of reporting problems. A read- ily available solution to unmask these difficulties existed in another discipline, but one with which most students would not generally be acquainted. This paper describes that solution and its effec- tiveness as seen from the student perspective. Us- ing self-reporting, students demonstrated that crossing disciplinary boundaries greatly improved their product quality, while significantly contrib- uting to their general knowledge, and increasing both their inter group and inter-disciplinary com- munications skills. INTRODUCTION Traditionally, the curricula has been organized by separate disciplines with compartmentalized courses in which there is minimal integration, if any, with related areas of study outside the disci- pline. In contrast, a defining characteristic recog- nized in the literature of the field of international business is an emphasis on integration of a wide range of multidisciplinary influences (Behrman, 1984; Dunning, 1989, 1993; Boddewyn, 1993). This integration is evident in the linkages between the international business curriculum and lan- guage training (Grahn & Vanden Bloomen, 1995) among others. Coincidentally, the accounting pro- fession has increasingly recognized the need for internationalization of both the profession and the supporting academic curriculum (Stout & Schweikart, 1989; Agami, 1991; Bandy, 1994; Bazaz & Parameswaran, 1994; Mueller, 1994; Wells, 1994). Not only is the international busi- ness course suited well to contribute to an interna- tional focus in the curriculum, but because it is inherently multidisciplinary, the course is also a natural platform for building learning experiences that mitigate the effects of segregation of related disciplines. THE INTERNATIONAL BUSINESS PLANNING PROJECT In an effort to realize the benefits of the multidis- ciplinary scope of international business, an inter- national business planning exercise was devel- oped and used during six semesters as a capstone experience for management majors. The planning project provided a comprehensive framework for integrating many of the separate subjects to which students had been exposed previously, while ad- dressing the international aspects of each separate subject. Organized in teams of three, international business students were required to do extensive research as a basis for developing a five-year for- mal business plan for a start-up import/export firm which included forecasted financial state- 101 Developments in Business Simulation & Experiential Learning, Volume 27, 2000 ments on a quarterly basis for the first year, and annually for the next four years (Morse, 1992). Each team was also required to make an oral presentation, with the objective of convincing an outside funding source of the viability and superi- ority of their prospective operation. This realistic, problem-based realistic planning exercise re- quired students to utilize knowledge and capital- ize on experiences gained throughout their aca- demic careers. These were desirable outcomes, particularly as they relate to critical management skills (Houle, 1981; Schon, 1988). Although students reported1 positive outcomes as a result of this exercise, a recurring problem be- came evident, i.e., most management majors found it very difficult, and some failed entirely, to accurately prepare the complete set of required financial statements.2 In many cases, it simply became too difficult to translate verbal assump- tions, analyses and conclusions into matching fi- nancial projections. This discontinuity between verbal and quantitative presentations rendered the resulting plan useless for it’s intended purpose – to persuade an investor to part with venture capi- tal to support the start-up firm. Ameliorating this difficulty created the impetus for inviting accounting majors enrolled in an au- diting course to participate in the planning exer- cise. They were to advise and assist management majors with translating the planning assumptions into financial statements, and to provide an at- testation report on the forecasted statements. While the primary objective of co-operative work was improved forecasted financial statements, an additional presumption was that opportunities for improving skills and broadening the scope of learning experiences for both the international business and accounting students would occur. Thus, the single project took on a multi- disciplinary flavor in both administration and evaluation. ____________ ____________ 1 Both anecdotally and in written “end of course” evalua- tions. 2 In fact, one student specifically stated “If I wanted to do accounting, I would have been an accounting major”. Method for assessing increased consistency Based on an independent review3 by two account- ing faculty members not involved in teaching ei- ther the international business or the auditing course, the co-operative exercise was a success in achieving the primary objective of improving the quality and accuracy of the financial statements (Morse, Laschenski, Bossung, 1997). Inclusion of an attestation function significantly reduced, though did not eliminate, the discontinuity be- tween qualitative assumptions, analyses and con- clusions and the accompanying quantitative fi- nancial statements. Also, informal discussions between instructors and students, and written comments by students on peer evaluations, indi- cated that management and accounting majors perceived other positive learning outcomes based on their participation in the co-operative project. To further probe student perceptions, goals were developed as follows: the cross-disciplinary, multi-course exercise will improve: 1) the quality of forecasted financial reporting in international business plans; 2) students’ communication skills and the quality of cross-disciplinary interactions; 3) students’ appreciation for the competen- cies/needs of associates from other disciplines; 4) the realism-level of the learning experience, par- ticularly for accounting majors; 5) exposure, for accounting majors, to analyses necessary for re- porting on international business plan financial statements; and for management majors, to analy- ses needed for preparation of prospective financial statements. 3 Both were provided with four different plans written without the assistance of accounting students, and four simi- lar plans written with the assistance of accounting students for comparison. 102 Developments in Business Simulation & Experiential Learning, Volume 27, 2000 Reviews of the international business4 and ac- counting literature5 provided limited information about specific tools for formal evaluation of goal achievement in cross-disciplinary projects. While the education literature contained much broad dis- cussion relevant to evaluating complete programs or institutional performance6, and evaluating indi- vidual faculty performance7, but there was mini- mal useful assistance, although some similar work was being done concurrently, with similar limita- tions (Clairefont-Hunot, 1996). Method for eliciting student responses To supplement past anecdotal reports, a survey instrument was developed for the next semester, designed to elicit quantitative and qualitative re- sponses, on a voluntary and anonymous basis, from international business students and partici- pating accounting majors. The wording of the survey for both groups of students was parallel, although modifications were made to reflect the reciprocal responsibilities of each group. The sur- vey used ten scaled questions, each of which asked respondents to rate an aspect of the cross- disciplinary project. The appendix contains a full listing of items subject to evaluation. The survey also asked respondents to identify the two “most” and “least” valuable aspects of the co-operative project, and whether or not the project should be continued in future semesters. Eleven of the 17 international business teams, and 17 of the 28 ac- counting majors completed the survey, a response rate of 65% for international business teams and 61% for the accounting majors—sufficient that responses were representative of all students par- ticipating in this exercise.8 ____________ 4 Especially The Journal of Teaching in International Busi- ness, and The Journal of International Business. 5 Especially Issues in Accounting Education. 6 I. e., Cave, Hanney & Kogan, 1991; Kells, 1992. 7 I. e., Braskamp, Brandenburg & Ory, 1984; Abrami, 1985; Ory, 1991; Cashin & Downey, 1992: Stringer & Finley, 1993; DeMong, Lindgren & Perry, 1994; Marsh, 1994. ASSESSING GOAL ACHIEVEMENT Based on the data collected through this survey instrument, achievement of each of the five goals were evaluated. In the discussion, note that the questions refer to those in the appendix, and are grouped by associated goal, rather than numerical appearance in the appendix. Goal 1)--improve financial statements As evidenced by students’ responses and ratings on scaled questions 6, 9 and 10, which probed their assessment of accountants’ assistance with financial statements, both international business teams and their accountants perceived that co- operative efforts led to improved financial state- ments, although the level of positive responses on scaled questions was consistently higher for the accounting majors. This assessment is consistent with previous observations regarding this multid- isciplinary exercise. Question 6 probed the perceptions of the level of understanding and usefulness of advice received by international business teams from their ac- countants. International business teams rated the “overall level of usefulness of the advice” re- ceived; accountants rated their respective interna- tional business team’s “overall level of under- standing of the advice” given. With a scale of 1 to 5, where 1 = minimal, 3 = adequate, and 5 = very good, international business teams’ responses av- eraged 3.09; the mean of accountants’ responses was 3.65. All but one of the accountants rated their international business team’s understanding ____________ 8 In addition, results of peer evaluations completed by all international business and participating auditing students were included as a component of the grading base in both courses. A systematic comparison of relevant responses on peer evaluations with those on the cross-course survey re- vealed no major inconsistencies. 103 Developments in Business Simulation & Experiential Learning, Volume 27, 2000 of their suggestions at adequate or better, while seven of the eleven international business teams rated the usefulness of their accountant’s advice as adequate or above. Questions 9 and 10 expanded data collected in Question 6 by addressing the quantity and quality, respectively, of accountants’ assistance as fol- lows: planning assumptions, each of the financial statements, and financial disclosures. The ques- tions required a rating on a 3 point scale, with 1 = very little quantity or very low quality, and 3 = very large quantity or very high quality. Means for accountants’ responses were consistently higher than those of international business teams, e.g., while both groups rated assistance with cash flows statements highest compared to assistance with other statements, the means for quantity of assistance were 2.71 and 1.91, and for quality were 2.65 and 2.09, respectively, for the account- ants and international business teams. Overall, the range of differences between the higher means for accountants compared to inter- national business teams is relatively consistent for all subsections of Questions 9 and 10: for quantity of advice, the range is approximately 40-55%, and for quality, the range is approximately 25-35%. The accounting majors clearly held their contribu- tions in greater regard than did international busi- ness teams, although international business teams discriminated between the quantity versus quality of advice, rating quality higher than quantity for most items. These findings on differentials in the cross-group assessment of the value of seek- ing/providing external assistance corroborated earlier findings (Morse, Laschenski & Bossung, 1997, 109-110). Goal 2)--improve communication skills and quality of group interactions Many students commented that effective cross- disciplinary communication was critical to achieving a successful business plan. They found that the project created challenging and produc- tive opportunities for improving communication skills. Questions 7 and 8, respectively, required rating the amount of and satisfaction with communica- tion. The means of responses to both questions support the positive assessment of communication reflected in written comments, although they indi- cate that accountants were more satisfied. Ques- tion 8 had a five-point response scale with 1 = very dissatisfied, 3 = satisfied, and 5 = extremely pleased. The means were 3.09 and 3.47 for inter- national business teams and accountants, respec- tively, with 36% of international business teams and 18% of accountants rating communication below 3. Question 7, regarding frequency of con- tact, had the following rating scale: less than once a week = 1, once a week = 2, and more than once a week = 3. While 45% of international business teams and 41% of accountants rated contact at once a week, the means for international business teams and accountants were 1.82 and 2.47, respectively, reflecting a notable difference between the “less than” and “more than” responses of the two groups, e.g., only 18% of international business teams, but 53% of accountants, rated contact at more than once a week. While a definitive explanation for this difference is not within the scope of this discussion, it is possible to conjecture that it results from the consistently negative ratings given by three international business teams to the cross-course aspects of the project, as indicated not only in their responses to Question 8, but also to Question 6 as well, and in their written com- ments. This dissatisfaction may be attributed, at least in part, to the mandatory rather than volun- tary participation in the project by international business students compared to the accounting majors, and the tendency for a few international business teams to persist in the expectation, de- spite guidelines to the contrary, that their ac- countants would take exclusive responsibility for reparing financial statements. p Goal 3)--improve appreciation for competen- cies/needs of associates from other disciplines By the completion of the learning experience, 104 Developments in Business Simulation & Experiential Learning, Volume 27, 2000 most international business teams and their ac- countants believed that the business plans were improved significantly by the cross-course col- laboration: they appreciated the different but valuable expertise that each group brought to the project. This did not mitigate the tendency for both groups to rate their own contributions higher compared to the assessments of those efforts by their cross-disciplinary counterpart. This ten- dency, noted previously in discussing responses to Questions 6, 9 and 10, is discussed here in rela- tion to responses to the first three questions on the survey. Questions 1 and 2 required ratings of the amount and adequacy, respectively, of the initial assumptions given by international business teams to their respective accountants. Each question had a five point rating scale, with 5 as the highest rat- ing. All international business teams rated the amount of initial information at least at 3; the mean of their responses to both questions was 3.36. Accountants’ ratings were considerably lower, with no accountant rating the adequacy of information above 3, and with means of responses at 2.29 and 2.26, respectively, for Questions 1 and 2. On Question 3, students assessed the level of difficulty or ease experienced by accountants when they attempted to understand their interna- tional business team’s initial assumptions. The question had a five point scale, with 1 = impossi- ble to understand, and 5 = easy to understand. The means were 3.24 for accountants and 3.82 for in- ternational business teams, indicating that ac- countants had more difficulty in comprehending the assumptions than was perceived by their in- ternational business counterparts. It may be surmised that the differential ratings on Questions 1, 2 and 3 reflect the cross-group dis- cord that occurred during the initial phase of the project. Since the project’s milestones and dead- lines had been set purposefully to encourage early cross-group interactions, it is not unexpected that cross-group differences emerged early in the life of the project. In addition, responses to the first three questions lend support to a finding from prior iterations, i.e., that international business students tend to underestimate the importance of well-developed and realistic assumptions as the foundation for consistency between the text of their plans and their financial forecasts (Morse, Laschenski and Bossung, 1997, pp. 106-107). Goal 4)—improve realism-level of the learning experience When asked to describe the most valuable aspects of the cross-disciplinary project, many accounting majors stated that, notwithstanding the challenges inherent in seeking effective means for assisting their international business teams, they neverthe- less valued this opportunity to take on the role of professional accountants, upon whom clients de- pended for expertise and advice. Some students stated explicitly that the need to confront and overcome certain logistical problems, particularly concerning conflicting study/work/social sched- ules among participants, added to the realism of the project. International business students commented that the cross-disciplinary requirements, such as hav- ing to obtain a report from their accountants, added to the realism of the project, although a few international business teams viewed working with accountants primarily as an added burden and complication to an admittedly difficult project. Goal (5)—improve exposure to analyses for reporting on financial statements or preparing prospective financial statements. Questions 4 & 5 asked participants to consider the project’s effects on advancing their understanding of financial statements with attestation reports, and of international business, respectively. Ques- tions 4 & 5 had identical 1-5 measurement scales, with 1 = not at all, and 5 = a lot. On Question 4, no international business team or accountant chose 1; one international business team chose 2, “less than somewhat”, while all of the accountants selected 3, “somewhat”, or higher. The mean of responses was 4.12 for ac- countants and 3.82 for international business 105 Developments in Business Simulation & Experiential Learning, Volume 27, 2000 teams. On the fifth question, regarding advancing their understanding of international business, the international business teams’ responses averaged 4.18, with all teams choosing a rating of at least 3, and nine of the eleven teams selecting 4 or 5, an outcome to be expected in an international busi- ness course. On the other hand, accountants’ re- sponses had a mean of 3.06, with thirteen of the seventeen respondents selecting 3 or above, and of those, six chose 4 or 5, indicating at least some advance in international business knowledge. Given the interests and expertise of the interna- tional business teams and the accountants, the dif- ferences in the means for these questions are not unanticipated. CONCLUSIONS AND IMPLICATIONS Overall, the survey results indicate that the inter- national business teams and their accountants as- sessed the cross-disciplinary aspects of the project in a positive manner. To summarize: a) interna- tional business students clearly perceived that their financial statements were improved consid- erably through consultation with accounting stu- dents; b) generally, both groups of students per- ceived that the project provided rich opportunities for improving communication and team-building skills:9 c) both groups expressed appreciation for the specific expertise and insight that each group contributed; d) Many participants concluded that the cross-disciplinary interactions required by the project added realism to their study and provided valuable career preparation. Collectively, the results support a conclusion that most students perceived the project as conducive to advancing their learning. However, these re- sults are limited to that general conclusion, and should not be interpreted as a specific measure of that increase, if any, in knowledge. ____________ 9 Two interesting student comments illustrate the breadth of this appreciation: from an international business student; “It was quite difficult to get the auditors to agree with our figures, unless we could demonstrate their accuracy”; from an accounting student; “it was much different working with a group who could ignore your advice!”. While these outcomes are consistent with favor- able impressions garnered on an earlier informal basis and suggest that this type of interdiscipli- nary project has promise, nevertheless, implica- tions are necessarily limited since the outcomes are based primarily on a survey instrument admin- istered at the end of one iteration of a learning ex- perience conducted at one university. Although limited, the results permit some consid- eration of wider implications for the business, as well as the broader, curriculum. Extending prior efforts to achieve cross-disciplinary integration using the international business course, such as combining the study of foreign languages with the course, this project’s outcomes support the asser- tion that the international business course serves well as a vehicle for extending the integration of learning experiences within the business curricu- lum, perhaps through co-operative projects with business communication courses, or with other management and/or marketing courses that rely on integrative materials, such as courses that de- velop managerial negotiation skills. Additionally, the platform develops not only a student focussed cross-disciplinary perspective, but at the same time facilitates both cross-disciplinary under- standing and co-operation at the faculty level as well. Finally, the outcomes bolster the contention that the broader curriculum would benefit from increased emphasis on implementing effective multidisciplinary programs, given their potential for enriching learning experiences. 106 Developments in Business Simulation & Experiential Learning, Volume 27, 2000 References upon request APPENDIX SCALED QUESTION ITEMS SUBJECT TO EVALUATION SCALE MEAN (see note) 1 amount of initial information and assumptions from ib team 1 = low 5 = high Act. = 2.29 I.B. = 3.36 2 adequacy of initial information and assumptions from ib team 1 = low 5 = high Act. = 2.24 I.B. = 3.36 3 difficulty or ease experienced by accountants in attempting to understand the initial information from ib team 1 = low 5 = high Act. = 3.24 I.B. = 3.82 4 project’s effect on advancing understanding of • attest function (accountant perspective) • financial accounting (ib team perspective) 1 = low 5 = high Act. = 4.12 I.B. = 3.82 5 project’s effect on advancing knowledge of international business 1 = low 5 = high Act. = 3.06 I.B. = 4.18 6 level of ib team understanding of advice (accountant perspective), and use- fulness of advice (ib team perspective) 1 = low 5 = high Act. = 3.65 I.B. = 3.09 7 frequency of contact between cross-course groups 1 = low 3 = high Act. = 2.47 I.B. = 1.82 8 satisfaction with cross-course communication 1 = low 5 = high Act. = 3.47 I.B. = 3.09 9 amount of accountant assistance with specific types of financial information 1 = low 3 = high a • assumptions Act. = 2.12 I.B. = 1.36 b • balance sheets Act. = 2.71 I.B. = 1.73 c • income statements Act. = 2.24 I.B. = 1.60 d • cash flow statements Act. = 2.71 I.B. = 1.91 e • financial disclosure Act. = 2.06 I.B. = 1.33 10 quality of accountant assistance with specific types of financial information 1 = low 3 = high a • assumptions Act. = 2.29 I.B. = 1.82 b • balance sheets Act. = 2.59 I.B. = 1.91 c • income statements Act. = 2.53 I.B. = 2.00 d • cash flow statements Act. = 2.65 I.B. = 2.09 e • financial disclosure Act. = 2.35 I.B. = 1.75 NOTE: Act. = Auditing course participants I.B. = International Business course participants 107 Table of Contents Volume 27, 2000 Internet International: A Simulation Exercise for Understanding Technological Innovation and customer Service In a Rapidly Growing Internet Server Company Simulations and Learning: Dialog and Directions Endnote Activity: A Tool for Integration of Course Content and Communication Skill Practice Incorporating Video as a Teaching Strategy in Interpersonal Communication Vision Quest: An Alternative Approach to Industry Analysis for MBA Courses in Strategic Strategic Management: An Evaluation of the Use of Three Learning Methods Trainer, Mentor, Educator: What Role for the College Business Instructor in the Next Century? Using the Internet and Shareware to Facilitate Computer Simulation in Distance Learning Classes Visual Modeling of Business Simulations Teaching about Information with Management Games A Self-Evaluation Based on the Discussion and Decision in Experts' Business Gaming The Restaurant Game Using Journals to Enhance Computer Simulation Based Learning Exercises to Facilitate Better Student Writing in the Undergraduate Strategy Class Identifying, Resolving, and Managing Common Ethical Dilemmas in the Workplace: An Experiential Approach Integrating the Digital Revolution into the Classroom The Wheel of Learning: An Integrative Business Curriculum Experiment The Changing Nature of Simulation Research: A Brief ABSEL History Perspectives on Simulation & Gaming's Review Process Experiential Learning Across Disciplines: Mixing International Business and Accounting Simulating Governmental Effects on Economic Development Internationalizing the Introduction to Business Course Using an International Text and Domestic Simulation with a Twist Using Stock Value as the Performance Measure in a Business Simulation Game Introducing Cross-Elasticities in Demand Algorithms Validating a Model of Currency Valuation An Exercise for Exploring the Relationship between Jungian Psychological Types and Organizational Politics Exercise: Preparing Financial Reports Using the Group Categorizing Technique Effect of Trust and Cultural Beliefs on Negotiation Processes: Data from an Experiential Role Play Experiential Learning Gets Stamp of Approval From the Boyer Commission Talent Search 2000 - An Experiential Activity to Help Strengthen Skills in Employee Recruitment and Selection Clemson University's Collaborative Learning Environment Initial Data on a Test Bank Assessing Total Enterprise Simulation Learning Changing the Assessment Paradigm: Using Student Portfolios To Assess Learning from Simulations How We Learn and Why We Don't: The Cognitive Profile Model: A Workshop in Teaching to Reach Your Students Knowing Thyself: A Portfolio Approach to Student Self-Assessment Collaborative Learning and Web-Based Instruction in a Cognitive Apprenticeship Model Teamwork Attributes in a Classroom Simulation Virtual Teams: Meeting the Next Challenge for Experiential Education New Age Learning: Nuance or Nonsense Developing Charisma: An Experiential Exercise in Leadership Problems and Solutions in Going Web-based with an Agribusiness Simulation Creating a Comprehensive Web-Enhanced Classroom Your Class is in Session, Now What? The Challenges of Teaching On-line An Application of Process Control Charts for Attributes as a Form of Classroom Assessment for Experiential Learning Work Goals and Life Aspirations: Do You Have What it Takes to be an Entrepreneur An Exercise to Develop Initiative: Possible Dream? The Ball Point Pen Assembly Company Management Game Review System Development Total Enterprise Simulations and Optimizing the Decision Set: Assessing Student Learning Across Decision Periods Facilitating Learning in the New Millennium with the Complete Online Decision Entry, System (CODES) The Marketing Management Experience The Right Venue for Your Simulation One More Time: Overall Dominance in Total Enterprise Simulation Performance A Profile of ABSEL Conference Attendees Learning Readiness: An Underappreciated Yet Vital Dimension in Experiential Learning Active Learning in a Professional Undergraduate Curriculum The Problem Is - They Think Differently! Cultures Integration in Mergers and Acquisitions: Putting Managers Together in a Business Simulation The Global Business Game: A Strategic Management and International Business Simulation