Business schools and research - Practically irrelevant?

As a PhD student in engineering, this is not only true in business school research but most other disciplines. There are typically two arguments against this though:

1. Research isn't meant to be applied all the time, but it's academic for academic's sake.

2. Research is relevant, because incremental gains can be picked up by the next researcher. That next researcher could make it relevant for managers and other practitioners.

I also find this troubling. Who said B-School research was ever relevant? Aren't MBA's for networking with the future business world's best and brightest?