Bayesian Methods in Family Business Research

Abstract

Bayesian methods constitute an alternative to null hypothesis significance testing (NHST). This article briefly reviews the concept of Bayesian methods, describes its differences with NHST, and discusses the potential of Bayesian methods to advance family business research and practice. We argue that Bayesian methods are well suited to take into account the significant heterogeneity that exists within the population of family firms. The article closes with a short guide for how to use Bayesian methods and report their results. The focus of the article is on regression models.

Keywords: Bayesian methods, null hypothesis significance testing, family business, research methods, regression models

JEL Classification: C11, C12, M13, G32