This is a significant change from the traditional training department that has typically been responsible for employee development. This shift is in response to economic factors, which have forced companies to re-evaluate their human resources in an effort to achieve strategic goals. The popularity of the corporate university raises questions for adult education as it readjusts and finds its role in this new landscape. To understand the appeal of corporate universities, it is helpful to understand the economic factors behind its creation. Computers have affected all aspects of business life and companies struggle to stay abreast of the constant and rapid changes that technology brings.
Business is conducted in a global economy, which has led to increased competition.
Companies have to contend with their neighbours across the street, as well as in other countries, many of which offer similar products with comparable benefits. In order to be successful, companies need to differentiate themselves from their competition and what sets them apart, are their employees. More and more businesses are looking to their human resources when developing their business strategies. This is in recognition that the contributions of employee knowledge and expertise, ideas and leadership are what make a company successful. They recognize the need to foster and encourage their individual employees and are therefore looking to corporate universities to fulfill these needs.