"The goal of this review is to use business theories in student retention research, which has so far been informed by economics, organizational behavior, psychology, sociology. Relationships in business networks are compared to these between students and universities, putting forth relevant characteristics for student churn/retention research. Theories regarding a taxonomy of customer churn, its determinants and consequences are also viewed in this context and implications for educational data mining (DM) are put forth. The relationship between entities is traditionally either following a strict hierarchical fiat (HF) – if the parties belong to the same organization –, or it’s essentially an arm’s length transaction (ALT) – if there is a market relationship between the entities. Recent business theories describe a more nuanced reality. In the light of wider changes in research, today’s corporations are found to be heterarchical; other authors speak of autonomous strategic initiatives that take place in corporations violating the principles of hierarchy. The relationships between companies are neither of ALT type. The works of Uppsala school [1] show that not only is a corporation essentially a network of units (as is elsewhere described both from multinational corporation (MNC) and its subsidiary perspective), but it is also embedded in a business network of its own. The picture is further complicated by the individualism-collectivism dimension. Big MNCs are comprised of internal markets (within one firm!) with an ongoing internal competition for world product mandates, centers-of-excellence, etc. between the subsidiary units; whereas the supply chain relationships that a firm belongs to, have been described as coevolving systems. Concentrating our attention on the relationships in business networks, we see that two firms gradually increase their commitment, as they do business with each other. A process of learning about each other’s capabilities, needs and strategies takes place, as well as a formation of routines for undertaking transactions. Sides adapt to each other incrementally. Knowledge transfer is inherently present – with organizational learning taking place – the results being often tacit and intangible. The relationship between a student and the university varies on the HF-ALT dimension. A student can simply purchase single classes from the Open University; one may be a full time student with an opportunity to call the university his alma mater after graduation; within the university’s administrative framework, the studies can also in part be paid for by giving consults to one’s peers; during the post graduate studies becoming a teaching assistant and teaching simultaneously with the studies is even more common; and finally – it is a goal of universities to populate the ranks of its faculties with the best graduates, in which case the student would administratively become a part of the organization. Entering studenthood comprises of overcoming various entry barriers. The curriculum is substantially different from that of a high school and the university studies are qualitatively harder as well – as the amount of independent work is greater, the tempo in the classes faster and as in some universities general courses can be amongst the most difficult in the undergraduate curricula. At the same students have to learn scheduling, budgeting, develop their EQ and career. The steep entry barriers underline the commitment it takes to enter the university relationship. Therefore sunk costs are formed, which are reflected in the fact that student churn lessens considerably later on. The mutual commitment and adaption is evident in the following: the student will be able to pursue further career goals after graduation; the student becomes familiar with the university life, procedures and administrative system; the youth helps to keep the university abreast of times; the university assesses its employees based on student feedback. And perhaps most importantly – the students adapt to the university and their academic mentor’s profile. For both sides knowledge transfer and (organizational) learning ensue and as ties with the industry are created, so are the intangible assets."