Institutional Ranking has become a common practice in higher educational institutions, and business schools are the most benefitted by such ranking announced worldwide based on various ranking criteria. The ranking is usually based on pedagogy, placement, research output, faculty-student ratio, international linkage, management of technology etc. In this paper, based on six postulates, we have argued and analysed why the performance of higher educational institutions should be based on sole criteria of Institutional Research Performance (IRP). We have developed a model of measuring research productivity for higher educational institutions based on calculating institutional research index and weighted research index. The institutional research productivity is calculated using a metric which consists of three institutional variables and one parameter. The three variables identified are the following: Number of Articles published in peer reviewed journals (A), Number of Books published (B), and Number of Case studies and/or Book Chapters (C) published during a given time of observation. The parameter used is a number of full-time Faculty members (F) which remains constant during a given period of observation. A framework for institutional ranking based on institutional research productivity by considering calculated Institutional Research Index is also developed which can be used to give grades to higher educational institutions. Further, the model is tested by making use of case example of two best Business Schools from the USA and two best Business Schools from India. The value of research index and weighted research index are calculated for these institutions and observed variation of research productivity during last four years is also studied and discussed.