Introduction

According to the 2017 Inside Higher Ed Survey, 71% of 409 chief business officers agreed that higher education institutions were facing significant financial difficulties (Jaschik, 2017). Many business schools use large classes to address the challenges of shrinking resources. Large classes may enable institutions to deploy faculty more efficiently and accommodate more students, especially when it is not feasible to expand facilities or increase hiring (Guseman, 1985). Nevertheless, large class size is a contested issue for students and instructors because it is thought to affect student success (Blatchford et al., 2009; Maringe & Sing, 2014).

Most studies on class size focus on student academic performance, but the results are inconclusive. At the elementary and secondary levels, some studies suggest that smaller classes positively impact academic performance (Glass & Smith, 1978; Robinson, 1990). Others indicate that class size has limited or no impact on performance (Hanushek, 1986; Hoxby, 2000). Similarly, in higher education, some studies indicate no difference on course grades between large and small classes (Guseman, 1985; Raimondo et al., 1990; Karakaya et al., 2001) and others report negative effects on academic performance (Paola et al., 2013; Maringe & Sing, 2014). Moreover, there is a dearth of research explaining how and why class size influences student behaviors and educational outcomes. Additional research is needed to better understand classroom dynamics related to class size (Anderson, 2000; Finn et al., 2003); Blatchford et al., 2009).

Another issue in the class size literature is that most studies focus on grades or standardized test scores as the primary measure of student success. Thus, research that examines the relationship between class size and educational outcomes beyond academic performance should be included in learning assessment. For example, the Association to Advance Collegiate Schools of Business (AACSB, 2021) endorses the use of “well-documented assurance of learning (AoL) processes that include direct and indirect measures for ensuring the quality of all degree programs that are deemed in scope for accreditation purposes.” In addition, the shift from teacher-directed to student-centered pedagogy means that student perception of learning has become an important educational outcome (Maher, 2004; Adam, 2004). Today, student satisfaction is recognized as critical factor in attracting and retaining students (Santini et al., 2017).

This study aims to fill the aforementioned gaps in the literature by applying Finn et al.’s (2003) theoretical framework of student engagement in the classroom. They suggest that student academic and social engagement with peers and teachers may influence academic achievement. This study uses Finn’s framework to investigate how student learning and social behaviors influence relevant educational outcomes in different class sizes. The purpose of the study is twofold: to better understand the dynamics of class size in business education and to provide practical strategies to improve educational outcomes and student satisfaction in large and small classes.