|| This paper deals with the quest for a pedagogical response to the challenge and opportunity of blended learning in further and higher education. It reports on the preliminary research findings arising from an on-going project involving the development of a blended learning version of an existing course on entry-level management competences in the workplace. This research investigates the characteristics of a development process for live on-line instruction and asks if there are any circumstances where this mode can outperform traditional in-class instruction in terms of student participation, engagement and intended learning outcomes. The approach involves a combination of interviews with faculty and students at different stages, live in-class observations and subsequent analysis of archive recordings. The early findings indicate a surprisingly high level of engagement and participation contrary to the initial expectations of faculty and students. Insights gleaned from the pedagogical development process are also discussed; these relate to the adoption of clear terminology and symbols to communicate different modes of instruction, the requirement for pedagogy to emerge from authentic practice with student collaboration and degree to which the technology becomes invisible as the course progresses. The authors conclude that there is much more research required on the affordances of blended learning for enhancing student engagement and performance.