The OCAI Textual Measure of Organizational Culture

Abstract

This document outlines a text-based firm-level measure of organizational culture, parsing information from 214,910 annual 10-K filings of publicly-listed US firms over the period 1994-2017. We utilize the Organizational Culture Assessment Instrument (OCAI) to construct a dictionary of the culture-related keywords and use the bag-of-words model to measure organizational culture. Given that the measure is developed from the OCAI, it captures the various dimensions that firms consider to be important in measuring their internal culture. We undertake a series of construct validation tests to demonstrate the construct validity of the OCAI textual measure of organizational culture.