Bayesian Statistics for Strategic Decision-Making

Understanding how decisions are made plays an important role in strategic management. Exploration is conducted as to whether the classical approach or the Bayesian approach is more frequently used in the strategic management decision-making literature. A sample of 51 decision-related articles is collected from the Strategic Management Journal and provides for relatively alarming results. The Bayesian approach is rarely mentioned and almost never used. Upon review, the remaining portion examines decision-making in strategic management and places emphasis on increasing the use of the Bayesian approach as a complementary statistical tool bridging the gap between research and practice