Bayesian Analysis in Strategic Management Research: Time to Update Your Priors

Abstract

Bayesian statistical methods offer an important and increasingly endorsed alternative to traditional statistical significance testing. This paper presents a brief introduction to Bayesian methods, providing guidance to strategic management researchers who may wish to incorporate these methods into their research. We describe the advantages of Bayesian approaches and explain the steps involved in conducting and reporting a Bayesian analysis. For illustration, we provide a sample analysis, including all associated code using version 15 of Stata, which features significantly augmented Bayesian capabilities.