Strategic Management Review > Vol 4 > Issue 1

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

Brian T. McCann, Owen Graduate School of Management, Vanderbilt University, USA, brian.mccann@owen.vanderbilt.edu , Andreas Schwab, Ivy College of Business, Iowa State University, USA, aschwab@iastate.edu
 
Suggested Citation
Brian T. McCann and Andreas Schwab (2023), "Bayesian Analysis in Strategic Management Research: Time to Update Your Priors", Strategic Management Review: Vol. 4: No. 1, pp 75-106. http://dx.doi.org/10.1561/111.00000053

Publication Date: 15 May 2023
© 2023 now Publishers, Inc.
 
Subjects
Research methodology in strategic management
 
Keywords
Bayesian statisticsstatistical significancemultivariate regressionnull-hypothesis significance testing
 

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In this article:
Introduction 
Frequentist versus Bayesian Approaches 
Benefits of Bayesian Approach 
Adoption Challenges 
Steps in a Bayesian Analysis 
Post-Estimation 
Reporting of Results 
How to Execute Bayesian Analysis with Stata: An Example 
Conclusion 
Appendix A — Key Terms 
Appendix B — Stata Code 
Appendix C — Stata-Specific Bayes Resources 
Acknowledgments 
References 

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.

DOI:10.1561/111.00000053