Business

Organizational cultural strength as the negative cross-entropy of mindshare: a measure based on descriptive text

A. Marchetti and P. Puranam

This paper introduces an innovative way to measure the strength of organizational culture through cross-entropy of members' mindshare distributions. Using data from Glassdoor.com, the authors reveal compelling insights into how firm characteristics relate to cultural strength, highlighting the intriguing dynamics involving role differentiation and gender balance. Research conducted by Arianna Marchetti and Phanish Puranam.

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Abstract

This paper proposes a novel measure of organizational cultural strength as the negative average cross-entropy of its members' mindshare distributions, defined on a support comprising a set of firm-specific cultural elements. Using descriptive text data from Glassdoor.com, the authors calculate this measure and show that older, smaller, and more geographically concentrated firms have stronger organizational cultures. Intriguing associations between organizational cultural strength, role differentiation, and gender imbalance are also noted.

Publisher

Humanities & Social Sciences Communications

Published On

Apr 19, 2022

Authors

Arianna Marchetti, Phanish Puranam

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