Diction Software For Content Analysis

Organizational Research
Methods
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The Application of DICTION to Content Analysis Research in Strategic Management

Jeremy C. Short and Timothy B. Palmer
Organizational Research Methods 2008 11: 727 originally published online 23 July 2007
DOI: 10.1177/1094428107304534
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The Application of DICTION

to Content Analysis Research
in Strategic Management
Organizational
Research Methods
Volume 11 Number 4
October 2008 727-752
2008 Sage Publications
10.1177/1094428107304534
http://orm.sagepub.com
hosted at
http://online.sagepub.com
Jeremy C. Short
Texas Tech University
Timothy B. Palmer
Western Michigan University
DICTION is a computer-aided content analysis program grounded in a number of theoretical
bases in linguistic research. DICTION has a number of attractive features that could be used
to analyze unique elements of language in narrative texts germane to strategic management
research. The authors apply the DICTION software to a sample of mission statements from
408 Association to Advance Collegiate Schools of Business colleges of business with a focus
on gaining insights concerning how DICTION can be used in strategic management research
utilizing content analysis. They find significant differences in word usage in mission statements based on organizational characteristics, including business school performance. They
conclude with suggestions for future research.
Keywords:
narrative; content; semiotic analysis
trategic management scholars frequently rely on content analysis to collect difficult to

obtain data in a wide range of research streams. The use of content analysis is appealing to researchers in strategic management because examination of narrative texts such as
press releases, annual report text, mission statements, interview transcripts, or other archival texts allow for the unobtrusive study of a number of statements, beliefs, and cognitions
from top-level executives that are generally difficult to otherwise obtain (Morris, 1994).
Despite its widespread appeal, content analysis is arduous and researchers must go to great
lengths to insure reliability in data coding and subsequent analyses. To ameliorate these
concerns, researchers have advocated the use of computer-aided content analysis for the
coding of organizationally produced texts such as annual reports and mission statements
(Morris, 1994).
In this article, we introduce an advanced computer-aided content analysis program
that could benefit a variety of research streams in strategic management. Specifically,
DICTION (Hart, 2000) was developed to analyze political speech and rhetoric (e.g., Hart
& Jarvis, 1997). Behavioral researchers have noted its potential for the study of leadership
(Bligh, Kohles, & Meindl, 2004a, 2004b), and accounting researchers have begun to apply
DICTION to aid in the study of image management (Rogers, Dillard, & Yuthas, 2005)
and communicative action (Yuthas, Rogers, & Dillard, 2002). Researchers in other fields
are utilizing DICTION to conduct content analysis using data sources commonly used by
Authors Note: The authors would like to thank Hans Hansen for his valuable comments on an earlier version
of this article.
727
728
Organizational Research Methods
strategy researchers (such as annual report texts); these scholars are also using DICTION
to aid in examining theoretical concepts of interest to strategic management researchers
(such as organizational image and identity). We therefore believe DICTION could be
quite useful in strategic management research by providing a valuable tool for researchers
attempting to examine language usage in organizations, and examine possible linkages
between managements narratives and organizational performance.
We briefly review the application of content analysis in strategic management and
demonstrate how DICTION could be used to analyze unique elements of language in texts
commonly relied on by strategic management researchers. We then use the DICTION
software to analyze a sample of mission statements from 408 Association to Advance Collegiate Schools of Business (AACSB) colleges of business and examine linkages between
DICTION content found in mission statements and organizational characteristics, including performance. We also illustrate how DICTION can be used in concert with other content analysis techniques such as human coding schemes. We conclude by highlighting the
potential for DICTION to answer future research questions utilizing content analysis to
capture important theoretical constructs of interest to strategic management scholars.
Content Analysis in Strategic Management

Content analysis is a qualitative research method that uses a set of procedures to classify or otherwise categorize communications (Weber, 1990). Typically relying on archival
data to extract criteria of interest to strategic management scholars, content analysis
has aided in analyzing corporate strategies (Bowman, 1978), organizational boundaries
(Fiol, 1989) new product development (Simon & Houghton, 2003), organizational
resources (Mishina, Pollock, & Porac, 2004), strategic groups (Osborne, Stubbart, &
Ramaprasad, 2001), and joint ventures (Merchant, 2004). Content analysis has also been
used to explore elements of cognition such as risk-return relations (Bowman, 1984;
Ramanujam, 2003), causal reasoning (Axelrod, 1976; Bettman & Weitz, 1983), and managerial attributions (Barr, Stimpert, & Huff, 1992; Clapham & Schwenk, 1991).
Any source of communication such as shareholder letters, interview narratives,
speeches, or transcripts from recorded meetings could be used by a strategy researcher as
an effective data source for content analysis so long as it provides a good match theoretically between the information being assessed (how information is being content analyzed)
and the context from which it is drawn (does the type of text being used as a source of
content analysis data fit the research question?). On balance, however, content analysis in
strategic management has primarily drawn from textual communications of managers,
particularly CEO shareholder letters and annual report texts (Duriau, Reger, & Pfarrer,
2007).
Content analysis of texts offers a number of potential benefits. Content analysis can be
used to identify individual differences among communicators (Weber, 1990), and compared with other techniques such as interviews, content analysis is recognized as a less
obtrusive technique for capturing managerial cognitions (Phillips, 1994). In addition, content analysis tends to avoid recall biases (Barr et al., 1992) and is a highly utilized means
of obtaining otherwise unavailable information (e.g., Kabanoff, Waldersee, & Cohen,
Short, Palmer / Content Analysis Research
729
1995). Finally, gathering data through content analysis of organizationally produced texts
such as shareholder letters has been encouraged because it allows for greater reliability
and replicability (Finkelstein & Hambrick, 1996).
Content analysis of text is especially useful for the study of managerial cognition
(Duriau et al., 2007). One reason is that access to CEOs is fairly limited, resulting in the
need for proxies to assess executives mental models. Relying on text to study cognition
assumes that insights about the authors mental models can be detected through the presence of, absence of, and frequency with which certain concepts are used in text (Carley,
1997). Even when authorship of the text is uncertain (e.g., a shareholder letter), there is
widespread agreement that executives are heavily involved in their preparation (Barr
et al., 1992). DAveni and MacMillan (1990) assert, Content analysis of written communications is useful for reconstructing perceptions and beliefs of their authors (p. 639).
Therefore, content analysis of text offers considerable potential to gain key insights into
the thinking of top managers and, in following, the choices they make. Examples of strategic management research using content analysis to investigate cognition include Bettman
and Weitz (1983) who relied on annual report text to assess attributions about corporate
performance. Other studies have conducted more elaborate tests of organizational cognitions by using such communications to extract representations of managerial mental
models (using content analysis) and then applying this data to further analytic study
through causal mapping and other analytical techniques for mapping strategic thought
(Huff, 1990).
Conducting Content Analysis

A complete review of content analysis is beyond the scope of this article. However, a
number of excellent sources are available for those seeking greater detail about content
analysis mechanics. These include texts concerning content analysis in general (Krippendorf, 2004; Neuendorf, 2002; Weber, 1990), texts that specifically address computer-aided
techniques (Alexa & Zuell, 1999; Kelle, 1995), and a number of published articles outlining content analysis procedures, comparing techniques and/or different software packages
for content analysis and/or text analysis (Bashor, 2004; Duriau & Reger, 2004; Hart,
1984a; Insch & Moore, 1997; Lowe, 2003; Weitzman, 1998), and a recent review of content analysis in organization studies (Duriau et al., 2007).
Generally, three broad types of content methodologies exist (Deffner, 1986; Morris,
1994): Human-scored schema, individual word count systems, and computerized systems
using artificial intelligence. Human scored systems involve training of coders to classify
text according to specific classification categories. In this system, the first step is a determination of what aspect of text will serve as the unit of analysis (word, phrase, sentence,
paragraph, full text). Then, categories are developed for classification and coding rules are
developed for each category. Coders are then trained to classify text and reliability is
assessed. For example, Short and Palmer (2003) content analyzed CEOs letters to shareholders by sentence clause to code different organizational performance referents such as
use of internal comparators (e.g., previous years sales) or external comparators (e.g.,
competitor performance).
730
In contrast to human-scored schemas, individual work count systems classify text into a
number of semantically equivalent categories and then use frequency counts to determine
the relative importance of each category in a text (Weber, 1990). For example, Osborne
and colleagues (2001) used word count software to count themes in shareholder letters.
Finally, artificial intelligence systems incorporate features that consider the syntax and
lexicon of words (Rosenberg, Schnurr, & Oxman, 1990). Thus, there is a mechanism to
resolve words with more than a single meaning. Artificial intelligence systems have been
the least prevalent technique in management research (Morris, 1994).
The DICTION software, described below, is useful for the application of individualword-count systems and artificial intelligence systems. Although word count systems can
be performed by human coders, computerized systems such as DICTION are advantageous because of their near perfect reliability, speed, and cost effectiveness (Morris, 1994;
Rosenberg et al., 1990). In the following sections, we describe the DICTION software and
illustrate potential applications of DICTION to strategic management research.
The DICTION Software

There are many choices available for conducting computer-aided content analysis. Most
programs largely rely on word frequency counts (Morris, 1994). To highlight the unique
contribution of DICTION, Table 1 provides a sampling of content analysis techniques and
software programs used in previous management research. In contrast to other techniques,
DICTION was designed by a communications researcher and focuses on the subtle power
of word choice and verbal tone (Hart, 1984b). DICTION also relies on word counts, but
the software package differs from others in a number of ways that may be attractive for
strategic management research. First, the software relies on word counts based on linguistic theory culled from a number of social thinkers. Second, DICTION also utilizes elements of artificial intelligence that have been underutilized in the management literature.
While providing these unique benefits, DICTION allows the flexibility of other software
programs where users can specify their own custom dictionaries. These custom dictionaries can then be used in conjunction with, or independently of, the predefined dictionaries. In the following sections, we provide greater detail on DICTIONs many facets.
DICTION Dictionaries
The DICTION software package (Hart, 2000) contains 31 predefined dictionaries, containing more than 10,000 search words that can be used to analyze any given text. Based
in linguistic theory (Bligh et al., 2004b) the dictionaries were developed based on a number of different types of narrative texts including business texts such as annual reports,
mission statements, and CEO speeches. The dictionaries search for language that tap into
the following characteristics: tenacity, leveling, collectives, numerical terms, ambivalence, self-reference, praise, satisfaction, inspiration, blame, hardship, denial, aggression,
accomplishment, communication, motion, cognitive terms, passivity, familiarity, spatial
awareness, temporal awareness, present concern, human interest, concreteness, past
concern, centrality, cooperation, rapport, diversity, exclusion, and liberation. These 31
731
Content analysis software that uses 31

dictionaries based on lexical theory in
conjunction with calculated variables
based on unique characteristics of text
Allows user to tag certain keywords in
context to highlight specific sentences
for later use or analysis
Software is useful for examining linkages
in the data
Software is useful for examining linkages
in the data
Can be adapted to specifically address

any theoretical research question,
coding can be broken down to
any unit (clause, sentence, document)
Text retrieval and analysis program
designed to allow users to ask
questions about words and patterns
in a given text
This article compares two direct forms
of causal mapping techniques in
strategy researchfreehand mapping
and pairwise comparisons mapping
DICTION software
package
Manual coding
Causal mapping
T.A.C.T. Software
NUD IST software

(now Nvivo7)
Atlas.ti
Textpack 4
Advantages of Each Technique
Technique
Pairwise comparison technique

results in more complex maps
involving more and stronger
causal relationships
User must specify content

of interest
Time consuming and somewhat

subjective; validity checks
among coders recommended
User must specify search words
Hodgkinson, Maule, and Bown

(2004), Organizational
Research Methods
Gephart (1993), Academy of

Management Journal
Bligh, Kohles, and Meindl

(2004a, 2004b), Journal of
Applied Psychology,
Leadership Quarterly
Kabanoff, Waldersee, and
Cohen (1995), Academy of
Management Journal
Schnatterly (2003), Strategic
Management Journal
Barringer, Jones, and Neubaum
(2005), Journal of Business
Venturing
Boyd, Gove, and Hitt (2005),
Strategic Management
Journal
Limited ability to detect

homographs
Example Using This Technique
Key Limitations
Table 1
A Comparison of DICTION and Other Content Analysis Techniques Used in Management Research
732
dictionaries, containing no duplication, have been selected to identify frequently encountered words used in public discourse. For example, the dictionary for ambivalence examines and codes, words expressing hesitation or uncertainty, implying a speakers
inability or unwillingness to commit to the verbalization being made (Hart, 2000, p. 33).
DICTION Master Variables

DICTIONs dictionaries are subsequently used for lexical analysisthat is, to study
vocabulary and word choice. This is done through the use of five master variables.
DICTIONs master variables were created with the rationale that if only five questions
could be asked of a given passage, these five would provide the most robust understanding (Hart, 2001, p. 45). Hart notes that each of the master variables was chosen intentionally, and was stimulated by theoretical work of a number of social thinkers. The first
master variable, Certainty, derives from Wendell Johnsons (1946) work on general
semantics, and the study of how language becomes rigid and what can happen as a result.
The Certainty variable involves language that indicates resoluteness, inflexibility, completeness, and a tendency to speak with authority. Using a sample of Fortune 500 companies,
previous research has found significant differences in Certainty among companys oral
statements compared to statements found in corporate annual reports (Ober, Zhao, Davis,
& Alexander, 1999). Optimism involves language endorsing some person, group, concept,
or event and this variable was motivated by James David Barbers (1992) work Presidential Character, who noted optimism was a key dimension for understanding political personality. This variable may be useful to strategy scholars who have noted that optimism is
associated with overconfidence and hubris for CEOs (Hayward, Rindova, & Pollock,
2004). Activity is based on the work of Charles Osgood and his colleagues (Osgood, Suci,
& Tannenbaum, 1957), The Measurement of Meaning, and examines language featuring
movement, change, and implementation of ideas and the avoidance of inertia. Elements of
activity and inertia have been germane to a host of strategy concepts related to strategic
behavior (Ansoff, 1987). Realism was developed as an attempt to tap into John Deweys
(1954) pragmatism found in the Western experience and examines language describing tangible, immediate, recognizable matters. This variable may be useful to analyze aspects of
pragmatism that have been argued to be an important element of open systems thinking in
certain strategic contexts (Hinthorne, 1996). Commonality, the fifth master variable, is an
approximation of the communitarian concepts found in the work of Etzioni (1993) and
others (e.g., Bellah, Madison, Sullivan, Swindler, & Tipton, 1991). This variable examines
language that highlights agreed-on values of a group and rejects idiosyncratic modes of
engagement. This variable may be useful to validate the assertions of strategy scholars who
have suggested that communitarian characterizations will become increasingly popular in
the strategic discourses of organizations such as joint ventures (Barry & Elmes, 1997).
Assigning scores for the five master variables begins with DICTION comparing word
usage in the analyzed text to words contained in the 31 unique dictionaries. This process
is similar to many other computer-aided content analytic devices that conduct word
searches with the exception of the vastness and predefined theoretical basis of DICTIONs
dictionaries. Results from the word search are used in formulas to assign scores for the
five master variables. It should be noted that any of the unique, specific dictionaries might
733
also be of use to strategy researchers. For example, denial has been deemed to be an
important element in defining narcissism (Brown, 1997). DICTIONs ability to capture
denial could be used to empirically study relationships associated with elements related to
narcissism such as hubris and CEO celebrity (Hayward et al., 2004).
DICTION Calculated Variables

A second category of variables used by DICTION are calculated variables. More than
word counts, the four calculated variables, based on unique theoretical underpinnings, are
assigned scores based on specific patterns in text detected by the software. DICTIONs
output provides scores for these variables, and also uses them in three of the five master
variable formulas. The first calculated variable is Insistence (use of repeated words),
which is a measure of code restriction and semantic contentedness. The assumption is
that repetition of key terms indicates a preference for a limited, ordered world. When calculating the insistence score, DICTION is unique in that it has a self-learning capacity; all
words used three or more times are isolated and the user decides if such words (those that
are not already within the DICTION database) should be used to calculate the insistence
score. These prior decisions are stored in the programs Elephant (a utility that remembers exempts and eligible words), and the Elephant is updated each time the user makes
a new decision (Hart, 2001). The insistence score is subsequently used in the formula for
the master variable certainty. A second calculated variable used to derive certainty is Variety. Variety conforms to Johnsons (1946) Type-Token Ratio that divides the number of
different words in a passage by the passages total words. A high score indicates a speakers avoidance of overstatement and a preference for precise statements. The third calculated variable, used in the calculation for activity, is Embellishment. Embellishment is the
ratio of adjectives to verbs and is based on David Boders (1940) conception that heavy
modification slows down a verbal passage by de-emphasizing human and material
action. Last, Complexity is a measure of the average number of characters-per-word in a
given input file. The logic for Harts (2000) inclusion of complexity is based on Rudolph
Fleschs (1951) notion that convoluted phrasings make a texts ideas abstract and its
implications unclear.
Additional Features of DICTION

Beyond the dictionaries, and master and calculated variables, there are a variety of other
noteworthy features associated with DICTION. One that was previously discussed is the
researchers ability to create user-defined dictionaries. Second, DICTION is an advanced
lexical approach in that it makes a modest statistical accommodation for confounding
homographs (words spelled the same but having different meanings such as lead the metal
versus lead subordinates). Confounding homographs (approximately 10% of DICTIONs
search words) are weighed differentially based on Eastons (1940) work. Benign homographs that imply different ideas but belong to the same domain of meaning are ignored
(e.g., the word judge denotes two distinct legal terms, the act of adjudication and a court
official). This feature of DICTION is an important one because the use of artificial intelligence systems has been limited in management research (Morris, 1994).
734
A third additional feature of DICTION is that it allows researchers to create composite

variables based on DICTIONs dictionaries in conjunction with DICTIONs calculated
variables. For example, Bligh et al. (2004a) create eight composite variables based on
Shamir, Arthur, and Houses (1994) work on the rhetoric of charismatic leadership. For
example, scholars have suggested that charismatic leaders will make more references to
intangible future goals and fewer references to concrete outcomes (Conger, 1991; Shamir
et al., 1994). Thus, the construct of tangibility was created by the inclusion of DICTIONs
dictionary for concreteness (words denoting tangibility and materiality) plus the calculated
variable for insistence (a measure of repetition of key terms in a given text) minus the calculated variable for variety (a ratio of different words divided by total words). The interpretation of this measure is that high scores on this construct would be associated with
lower levels of charisma (Bligh et al., 2004a).
DICTION Summary
The use of 10,000 words in 31 dictionaries to create master and calculated variables is
a testament to the power and complexity of DICTION. Although grounded in considerable linguistics and communications theory, DICTION was originally created considering
a number of types of texts including business texts such as annual reports, corporate public relations statements, mission statements, CEO speeches, financial news, legal documents, and magazine and TV advertisements. Published research using DICTION has
continued to examine a number of organizationally produced texts with relevance to strategic management research such as CEO letters to shareholders, management discussion
and analysis sections from annual reports, and press releases. In addition, research using
DICTION has been published in a number of management-oriented journals such as
Journal of Applied Psychology, Journal of Business Ethics, and Leadership Quarterly.
Finally, DICTION research has been used to examine conceptual ideas in management
such as charismatic leadership, organizational image, and organizational identity. Thus,
DICTION holds promise as a content analysis technique that is well suited to issues germane to strategic management research. Table 2 provides a review of previous research
using DICTION to examine texts and or conceptual theories common to management
research.
The robustness of DICTION allows it to be applied to a number of research efforts
spanning the public, private, nonprofit, and government sectors of the economy. Researchers have detected a high level of agreement between human coders and DICTION
results, and assert that this technique would be useful for research involving the language
of leadership (Bligh et al., 2004a). Toward that end, we highlight one common organizationally produced text, organizational mission statements, to illustrate the softwares capabilities. In particular, we use DICTION to examine a sample of AACSB business school
mission statements to showcase how DICTION can be applied in strategic management
research. We utilize a two-study approach. The first study highlights the DICTION software and how it can be applied to archival texts germane to strategic management
research. The second study illustrates how DICTION can be used in conjunction with a
human coding framework used in previous strategy research on organizational mission
statements.
735
Written statements from the

United Church of God such as
belief statements, letters from
its president and chairman,
and magazine articles
Press releases from 81 firms
describing their information
technology related
investments
Speeches, radio addresses and

articles from U.S. newspapers
Speeches, radio addresses and

articles from U.S. newspapers
Press releases, e-mails, speeches

of officers, testimonies, and
published articles
Narrative Document Analyzed
Examines effects of
information technology
investment press releases
on firm performance
Examines image
management of the
American Institute of
Certified Public
Accountants (AICPA)
Examination of President
Bushs rhetoric and the
media coverage before and
after the 9/11 crisis
Examination of elements of
charismatic leadership
evident in President Bushs
rhetorical language and in
the media before and after
the 9/11 crisis
Examines communicated
values as indicators of
organizational identity
Research Question,
Topic, or Goal
Hunter (2003), Journal of

Information Technology
Theory and Application
DICTION dictionaries were used to assess

differences in spatial awareness, ambivalence,
rapport, diversity, hardship, blame, exclusion,
aggression, past concern, and inspiration in
press releases based on articulation of IT
investments
(continued)
Aust (2004), Communication

Studies
The author used DICTION to develop 36 custom

dictionaries to examine different values as
indicators of organizational identity

(2004b), Leadership
Quarterly

(2004a), Journal of
Applied Psychology
Rogers, Dillard, and Yuthas

(2005), Journal of
Business Ethics
DICTION was used to compare statements from

the AICPA during time periods using
DICTION measures of denial, activity,
optimism, realism, and commonality
DICTION measures of optimism, collectives,
faith, patriotism, ambivalence, and aggression
were compared to human coding and applied
to presidential speeches
Authors created eight composite variables based
on DICTION dictionaries to assess elements of
charismatic leadership based on a framework
developed by Shamir, Arthur, and House
(1994)
Publication Citation
Use of DICTION
Table 2
Examples of Previous Research Using DICTION
736
Use of communicative action

in corporate annual reports
Applies DICTION and a

transitivity index to
accounting research
Examines the link between

corporate culture and
public journalism
Examination of the use of

certainty in public business
discourse
Chairmans letters and

management and discussion
sections of annual reports
CEO letters to shareholders
Management discussion and

analysis sections of 10-K
reports and recorded public
discourses
Research Question,
Topic, or Goal
Managements discussion and

analysis sections from corporate annual reports
Narrative Document Analyzed
The authors used DICTION to develop two

custom dictionaries: one for words denoting
concern with profitability and one for words
expressing social concern
Authors used DICTION to find differences in the
use of certainty (a DICTION master variable)
between oral and written communications
Authors compared three groups of firms (those

that performed above and below analysts
earnings expectations and average firms)
using DICTION master variables
Good and poor performers are compared
using DICTION master variables (certainty,
optimism, activity, realism, communality)
Use of DICTION
Table 2 (continued)
Ober, Zhao, Davis, and

Alexander (1999), Journal
of Business
Communication
Sydserff and Weetman

(2002), Accounting,
Auditing and
Accountability Journal
Loomis and Meyer (2000),
International Journal of
Public Opinion Research
Yuthas, Rogers, and Dillard

(2002), Journal of
Business Ethics
Publication Citation
737
Applying DICTION to Organizational Mission Statements

Mission statements are important narrative documents that allow organizations to define
their overarching purpose or reason for existence. Scholars have argued that identification
of the mission is the starting point in strategic planning (Ireland & Hitt, 1992). The mission
is seen as an enduring statement of purpose and the cultural glue that allows internal and
external stakeholders to function as one. Missions encourage stakeholders to embrace company goals as their own (Ireland & Hitt, 1992) and can provide a basis for a psychological
contract between an organization and its employees (Thompson & Bunderson, 2003).
Furthermore, mission statements allow organizations to provide insights into their philosophies and strategies that constitute their organizational identity (Leuthesser & Kohli, 1997).
Mission statements are highly salient to academic institutions such as universities and
schools of business. The articulation of, and adherence to, a mission is central to business
school accreditation, regardless of the accrediting body. Thus, schools cannot be cavalier
when crafting their mission, but rather must consider their core competencies, stakeholder
groups, and long-term goals in devising their mission. What is included in the mission,
therefore, is not a matter of happenstance but instead is the result of deliberate choices
intended to communicate to, and motivate, key constituents. Top administrators, deans,
and other associated stakeholders would therefore put considerable thought into the language content and tone of their mission statements. For this reason, computer-aided software such as DICTION can be an important analytical tool to investigate the content of
mission statements.
Method
Our sample was drawn from AACSB-accredited schools of business in the United
States in 2005. At the time of our data collection, 429 U.S. schools of business were accredited by the AACSB. We were able to collect mission statements for 408 schools from the
AACSB Web site, allowing us a sample constituting 95.1% of the U.S. schools of business
accredited by the AACSB at the time of our data collection.
Mission statements were analyzed using the DICTION 5.0 software package (Hart,
2000). For our illustrative analysis, we chose to contrast the missions of public and private
institutions. Previous research has found significant differences in the articulation of key
business school objectives between private and public schools in terms of the ethical content of mission statements (Buff & Yonkers, 2004). Thus, we had reason to suspect that
DICTION would be able to identify points of distinction.
To measure performance, we relied on graduate and undergraduate performance rankings from U.S. News & World Report. Although the use of rankings is often controversial,
such measures represent an important goal for business schools with considerable institutional norms that make these reputation measures salient for most, if not all, schools or
colleges of business (Gioia & Corley, 2002); Such measures have been noted to be especially salient to administrators and deans (Gumbus, 2005). Because U.S. News & World
Report notes the first step in their rankings methodology is categorizing schools by mission (Morse & Flanigan, 2006), we believe these measures are especially attractive for our
illustration of DICTION.
738
We conducted two data analysis procedures to assess the ability of DICTION to detect
(a) differences in mission content between public and private schools, and (b) relationships between mission content and business school performance. We used ANOVA, and
OLS Regression, respectively, to perform each of these analyses.
Results
Correlations for DICTION master and calculated variables are displayed in Table 3. As
shown in Table 4, our analysis revealed significant differences between private and public
schools for one master variable (i.e., optimism) and two calculated variables (embellishment and complexity). In the following paragraphs, we provide mission statement exemplars from our sample that provide insight into DICTIONs content analysis capabilities.
With regard to optimism, we found that the language of private business schools was
more likely to include positive entailments or endorsements of specific persons, groups,
concepts, or events associated with the school. For example, the private school scoring
highest on this dimension was Seattle University. Their mission states it is inspired by
the Jesuit traditions of academic excellence, education for justice, and service to others.
The strong endorsement to positive Jesuit values resulted in the high optimism score.
Second, the missions of private schools could be characterized as incorporating more
embellishment in that they tended to rely more on adjectives than verbs when articulating
their mission. For example, New York Universitys mission notes the school is committed
to deliver the highest quality management education to the brightest business students in
a dynamic environment of mutual learning, teamwork, and support. Furthermore, their
mission is to foster creative, cutting-edge research (italics added).
Last, the mission statements of public schools were considerably more complex in that
they, on average, tended to rely on more complex word usage (i.e., larger average word
size) than mission statements of private business schools. For example, the mission at California State University, Chico notes it is a student-centered, residential learning community that fosters innovative, high quality business education emphasizing applied learning,
integration of technology, and understanding of diversity. In contrast, private Rollins
College scored very low in complexity as their mission is to prepare students to be both
managers and leaders who will add value to their organizations and communities.
As shown in Table 5, one master variable (activity) and two calculated variables (embellishment and complexity) were associated with our performance measures. Across undergraduate and graduate rankings, activity and embellishment were positively associated with
higher rankings, whereas complexity was negatively associated with higher rankings. An
example of a ranked school with high activity (language featuring movement and change) in
their mission is Texas Christian University. Their mission is developing ethical leaders with
a global perspective who help shape the business environment of a rapidly changing future.
Arizona State University provides an example of a ranked school with a high score on embellishment (greater use of adjectives than verbs). The mission notes, We strive to nurture student success through innovation and value-added personalized programs. The following core
competencies are emphasized within our program: knowledge, skills, ethical behavior, positive attitude, and creativity. There was a negative correlation between complexity (i.e.,
word size) and rankings measures. An example of a ranked school whose mission scored low
739
Table 3
Correlations Between DICTION Master and Calculated
Variables in U.S. Colleges of Business
Master variables
1. Certainty
2. Optimism
3. Activity
4. Realism
5. Commonality
Calculated variables
6. Insistence
7. Embellishment
8. Variety
9. Complexity
1
.12
.14
.04
.05
1
.24
.17
.11
1
.16
.03
1
.10
.79
.18
.86
.25
.09
.28
.14
.06
.14
.93
.19
.08
.10
.14
.04
.66
.05
.00
.05
.05
1
.17
.73
.03
1
.23
.05
1
.28
p < .05. p < .01.
Table 4
ANOVA Differences Between Public and Private
Schools Mission Statement Content
DICTION Scores
Master variables
Certainty
Optimism
Activity
Realism
Commonality
Insistence
Embellishment
Variety
Complexity
Public Schools
Private Schools
44.64
55.49
44.72
43.36
51.71
44.64
56.82
42.33
43.54
52.02
0.00
10.29
3.54
0.19
0.34
64.73
2.10
0.69
6.10
64.83
3.48
0.69
5.96
0.00
5.30
0.03
9.17
p < .05. p < .01.
on complexity is The University of California at Berkeley. Their mission states, Our goal is
to graduate students with the skills to make the most of the economic opportunities available
in our country and our worldand the values to share what they create. Overall, there were
several consistent findings in the use of language between business school mission statements
and organizational characteristics, including performance.
Integrating DICTION With Human-Scored Content Analysis

The value of DICTION can be illustrated further by demonstrating how DICTION analyses can be used in conjunction with human- scored content analysis. To provide a theoretical lens, we relied on a typology developed by Pearce and David (1987). Although
740
Table 5
Regression Relationships Between Mission Statement Content and Performance
DICTION Scores
Master variables
Certainty
Optimism
Activity
Realism
Commonality
Insistence
Embellishment
Variety
Complexity
F
Adjusted R2
U.S. News & World Report

Undergraduate Rankings

Graduate Rankings
.10
.04
.30
.05
.03
.17
.02
.29
.12
.02
.12
.33
.05
.21
2.24
.03
.10
.29
.02
.30
3.12
.05
Note: Standardized regression coefficients are shown.
p < .05. p < .01.
there is no profile for the ideal mission statement, Pearce and David were the first to
systematically explore mission statement characteristics and their implications for business,
including performance. An important outcome of their research was a typology of eight mission statement components. Motivated by their work among Fortune 500 firms, more recent
studies have used Pearce and Davids framework to illustrate uses of computer-aided content analysis (e.g., Morris, 1994), and Pearce and Davids scheme continues to be an established framework to analyze the content of organizational missions (e.g., OGorman &
Doran, 1999).
Method
Mission statements were analyzed using Pearce and Davids (1987) eight-item typology. Table 6 displays the mission elements, coding definitions, and examples from business school mission statements.
Both authors independently coded all mission statements. A coding of 1 was assigned
to the statement for each component if it was judged as being present in the mission statement and a coding of 0 was assigned if the component was judged as not present. Initial
intercoder reliability was 95%. After the first round of ratings, mission statements of
schools both coders agreed on were retained. Schools with coding differences were independently reevaluated by each author. Subsequent evaluations were discussed until agreement was achieved.
Results
As shown in Table 6, content analysis revealed considerable variance in the presence
of Pearce and Davids (1987) mission statement elements. The specification of target
741
The expression of
commitment to
survival, growth,
and profitability
The identification of
core technologies
The specification of
geographic domain
principal products
or services
target customers and
markets
Mission Element
To provide a quality, professional
business education for the people of
the State of Alabama (Auburn
University)
Who are the schools customers (e.g.,

graduate students, undergraduate
students, students defined by
religious orientation, or working
professionals)
What are the schools primary products
or services? (e.g., broad-based
definitions of educating, teaching, or
focused definitions such as online
and executive programs)
Where does the school compete? (e.g.,
statements that define a geographic
scope such as a local community,
city, state, or region)
Is the use of technology in program
delivery specified? (e.g., lecture,
distance learning, or wireless. This
component does not address the
content of curricula but the delivery
of programs)
Is the school committed to performance
objectives? (e.g., statements that
express specific growth, ranking, or
enrollment goals or more general
goals about continuous
improvement)
32.8
134
(continued)
10.3
42
Bringing new technologies, new

methods of learning and teaching
and new ways of thinking
(University of Michigan)
Is committed to continuous
improvement of its historic teaching
and service tradition (Clark Atlanta
University)
50.4
206
We are Bostons public business

school (University of
Massachusetts Boston)
%
48.9
94.1
n
200
Schools Articulating
Mission Component
385
Dedicated to providing a nationally

accredited professional education
(Indiana State University)
Mission Statement Example
Coding Definition
Table 6
Manual Coding Scheme for Mission Statements of Schools of Business
742
the schools desired
public image
the schools selfconcept
key elements in the
schools philosophy
Mission Element
What are the basic beliefs, values, and

priorities? (e.g., statements that
express philosophical ideals, and the
importance of training for social
responsibility)
What is the organizations distinctive
competence or competitive
advantage? (e.g., specific mention of
strengths, keys to success, or unique
quality)
Is the school responsive to social, community, and environmental
concerns? (e.g., express concern or
outreach toward to the greater
community, state, region, or ethical
duties to the community at large
including partnerships and
training)
Coding Definition
72.1
61.6
295
252
Distinguished by their excellence and

their emphasis on the management
of technology (North Carolina
State University)
Engaging in intellectual contributions
and conveying the results of such
efforts to the wider academic and
business community (Southwest
Missouri State University)
36.9
151
Schools Articulating
Mission Component
Through a broad based liberal

education in the Catholic tradition
(Kings College)
Mission Statement Example
Table 6 (continued)
743
customers and markets was evident in 200 (49%) of the missions analyzed in our sample.
The identification of principal products and/or services was articulated in 385 (94%) of
the missions analyzed in our sample. The identification of geographic domain where the
school competes was presented in 206 (50%) of the missions analyzed in our sample. The
identification of use of technology was articulated in 42 (10%) of the missions analyzed in
our sample. The expression of commitments to growth, survival, and profitability was
noted in 134 (33%) of the missions in our sample. The specification of key elements of
the school philosophy was discussed in 151 (37%) of the missions in our sample. The
identification of the school self-concept was mentioned in 295 (72%) of the missions in
our sample. The identification of the schools desired public image was highlighted in 252
(62%) of the missions in our sample.
To illustrate the use of human coding in conjunction with DICTION we followed a procedure used by Hunter (2003). In his study of the influences of IT investments on stock
market performance, he first classified IT investments as exploratory or exploitive based
on human coding of press releases. DICTION was used in an exploratory manner to examine textual differences between exploratory and exploitive documents (by comparing the
means of each group). To follow this procedure, we first coded for mission elements based
on Pearce and Davids (1987) framework of eight mission elements. Next, we used DICTION master and calculated variables to examine differences in language use in mission
statements that either did or did not articulate each element. Our results for DICTION
master variables are displayed in Table 7 and our results for DICTION calculated variables are displayed in Table 8.
In regard to DICTIONs master variables, missions that articulated several of Pearce
and Davids mission elements tended to be significantly higher in regard to certainty (language that indicates resoluteness, inflexibility, completeness, and a tendency to speak with
authority); significant differences in the means of certainty were evident in six of the eight
Pearce and David elements. However, missions that relied on such elements were generally lower in terms of realism (language describing tangible, immediate, recognizable
matters). In regard to DICTIONs calculated variables based on the unique characteristics
of mission text, missions that included Pearce and Davids elements were often higher in
terms of insistence (use of repeated words), but they were lower in terms of variety (based
on DICTIONs calculation of a Type-Token Ratio that divides the number of different
words in a passage by the passages total words).
Because strategic management researchers are often concerned with examining the
determinants of organization performance, we conducted an additional illustrative analysis
with hierarchical regression; specifically, we examined the influence of mission elements
on business school rankings above any effects captured by the Pearce and David elements.
Our results are displayed in Table 9. The influence of DICTION elements provided
approximately the same change in R2 as the Pearce and David elements. Both the human
scored content analysis (based on the Pearce and David framework) and DICTION analysis significantly increased R2 . Overall, insights from the Pearce and David framework
highlight that the highest performing colleges expressed commitment to growth, survival,
and profitability and eschewed the identification of geographic area where they operate;
In terms of the insights of DICTION, the highest ranked schools exhibited mission
744
p < .05. p < .01.
target customers and
markets
principal products
and/or services
geographic domain
where the school
competes
use of technology
The expression of
commitments to
growth, survival,
and profitability
key elements of the
school philosophy
the school
self-concept
the schools desired
public image
Mission Component
Articulated
F
55.42
56.32
55.58
55.40
42.67 19.26
42.97 10.91
4.26
43.38
43.19
42.38 31.79
44.76
44.46
44.24
45.05
0.88
55.32
55.15
44.05
3.22
43.28
44.15
55.98
55.12
Yes
42.32
9.03
42.83 14.83
No
Optimism
45.11
44.60
Yes
Certainty
0.15
0.35
2.67
1.29
3.39
55.61
55.43
0.24
0.12
54.69 16.01
55.59
55.69
55.86
55.03
55.89
No
43.86
41.76
40.91
43.49
42.97
41.34
44.52
43.29
Yes
Activity
F
41.17 4.20
43.27 1.17
44.12 6.57
41.54 2.19
42.06 0.22
43.68 3.10
40.51 2.43
41.74 1.47
No
43.80
43.39
43.05
44.03
43.27
44.16
43.08
43.11
Yes
Realism
F
43.52 0.43
43.92 1.30
44.27 8.58
43.28 2.95
52.93
52.48
52.03
51.93
52.51
51.70
43.15 5.24
44.04 1.40
51.66
51.87
Yes
44.24 1.86
44.21 6.75
No
Commonality
Table 7
ANOVA Differences in Articulation of Mission Components and DICTION Master Variables
51.21 9.74
51.67 1.91
52.11 0.02
52.21 0.25
51.64 1.11
52.45 1.80
52.49 0.58
52.28 0.58
No
745
56.45
54.85
51.80
49.54
55.70
52.84
75.61
77.22
80.26
82.53
76.36
79.22
p < .05. p < .01.
55.24
76.82
48.46
83.61
The specification of target

customers and markets
The identification of principal
products and/or services
The identification of geographic
domain where the school
competes
The identification of use of
technology
The expression of commitments
to growth, survival, and
profitability
The specification of key
elements of the school
philosophy
The identification of the school
self-concept
The identification of the schools
desired public image
No
Yes
Mission Component Articulated
Insistence
2.87
2.97
4.32
3.45
2.79
9.77
14.52
4.58
8.47
3.66
4.34
2.17
2.18
2.84
15.85
1.47
Yes
Embellishment
3.98
3.32
2.44
3.80
3.90
3.11
4.58
3.93
No
3.75
0.04
10.36
1.81
1.26
0.69
0.70
0.71
0.71
0.71
0.71
0.69
3.98
0.78
0.70
Yes
3.34
Variety
0.76
0.75
0.74
0.74
0.74
0.74
0.76
0.75
No
38.26
15.92
10.52
8.13
2.86
6.96
9.31
25.44
6.07
6.08
6.10
6.04
6.15
6.08
6.09
6.16
Yes
Complexity
Table 8
ANOVA Differences in Articulation of Mission Components and DICTION Calculated Variables
6.12
6.11
6.10
6.15
6.04
6.11
6.10
6.07
No
0.78
0.35
0.01
4.32
2.01
0.28
0.01
0.86
746
statements that used simple, rather than complex, words (i.e., they were significantly
lower in terms of the DICTION calculated variable for complexity).
In the following section, we discuss the implications of our analyses and suggest ideas
for future research.
Discussion
The intent of this study is to illustrate how DICTION can be used to aid content analysis
in strategic management research. Hart (2000) has said that DICTION is a reliable but
humble device because it ignores how and why words are chosen in texts and instead
focuses only on the kinds of words people use. Our results, therefore, are not replete with
vivid images, but instead reveal patterns of word usage that may be missed with other
forms of content analysis. Unlike a human coder, DICTION is never tempted by biases.
Thus, it allows researchers the freedom to consider theoretical possibilities that explain
patterns of text detected in narratives of interest. Research has found a high degree of
comparability between DICTION measures and human coding (Bligh et al., 2004b), but
DICTION can analyze thousands of words of text in minutes.
Despite the many merits of DICTION, researchers should not be cavalier when using
this tool. The master variables, calculated variables, and specific dictionaries used by DICTION may or may not be theoretically viable for every research question. One of the
strengths of content analysis is that this technique can be used to conduct both inductive
and deductive research (Roberts, 1989). Although previous research has used DICTION
in a largely exploratory manner (e.g., Hunter, 2003), we believe that the value of this tool
for strategic management will be best maximized when DICTION is used to examine predefined elements based on theoretically defined categories and concepts. With that goal in
mind, in the following sections we identify a number of research streams that may fit well
with DICTIONs capabilities.
One master variable assessed by DICTION, certainty, has been noted as an important
element in business discourse (Ober et al., 1999), and future research could examine
topics involving the use of certainty in strategic management. For example, recent
research examining the prospectus statements of IPOs found little relation between prospectus content and performance (Daily, Certo, & Dalton, 2005). Incorporation of DICTION into this research stream would provide a tool to assess the relationship between the
narrative tone of prospectus statements and performance. Because decision makers often
rely more on intuition than hard data when making strategic decisions, it is possible that
investors react more to the verbal tone and syntax of prospectus statements when deciding
whether to invest in such ventures; A relationship between certainty and IPO performance
could suggest that investors (or perhaps underwriters) are positively disposed toward confidence in prospectus writing when it comes to pricing and valuing IPOs.
Scholars have suggested that positive psychological capital of organizational leaders
may lead to performance at the organizational level (Luthans & Yousseff, 2004). In assessing the positive psychological capital of leaders, Luthans (2002) notes that confidence,
hope, resilience, and optimism are four key dimensions of this construct. DICTIONs master variable for optimism measures this quality in a manner that may be useful for research
747
p < .05. p < .01.
Manual coding
The specification of target customers and markets
The identification of principal products and/or services
The identification of geographic domain where the school competes
The identification of use of technology
The expression of commitments to growth, survival, and profitability
The specification of key elements of the school philosophy
The identification of the school selfconcept
The identification of the schools desired public image
DICTION variables
Certainty
Optimism
Activity
Realism
Commonality
Insistence
Embellishment
Variety
Complexity
Change F
R2
Change R2
.07
.07
.18
.01
.14
.04
.01
.04
2.88
.06
.06
.04
.02
.21
.05
.11
.06
.04
.01
.15
.05
.21
.03
.05
.13
.28
.06
.19
2.18
.10
.05
2.84
.05
.05

Graduate Rankings
.04
.01
.20
.03
.12
.04
.04
.00

Undergraduate Rankings
Table 9
Hierarchical Regression Results for Manual Coding and DICTION Measures
.21
.02
.21
.13
.00
.10
.23
.13
.28
3.00
.12
.06
.08
.07
.17
.02
.13
.07
.01
.03
748
encompassing elements of positive psychological capital. Confidence may be assessed by

DICTIONs tenacity dictionary, which highlights verbs that denote confidence and totality. DICTION users could utilize the softwares ability to create custom dictionaries to
assess terms that capture the other dimensions of positive psychological capital: hope and
resilience.
DICTION may be useful for providing a reliable tool to assess elements of social identity. Ullrich, Wieseke, and Van Dick (2005) used semistructured interviews to examine
elements of continuity, change, and uncertainty as elements of social identity in a corporate merger. The DICTION master variable activity (which analyzes language featuring
movement and change and the avoidance of inertia) would allow for assessment of this
element of social identity in interviews or other narrative texts. This analysis could be supplemented with DICTIONs ambivalence dictionary that captures elements of uncertainty.
Recent empirical research has noted the role of organizational culture in responding to
identity threats (Ravasi & Schultz, 2006). These authors argue that in organizations, visible, tangible, and audible manifestations of culture, such as language, stories, visual
images, material artifacts, and established practices, are among the most powerful symbols members rely on for constructing meaning and organizing action (p. 453). They
examined a number of narrative texts that could be analyzed using DICTION including
semistructured interviews, transcripts of company seminars, in house magazines, and
annual reports. The authors sampled from a single organization and found credibility to be
one of the essential components of corporate identity. DICTIONs measure of realism
(which assesses language describing tangible, immediate, and recognizable matters) could
be used to examine credibility in future research efforts that emphasize the language or
organizational culture.
Etzionis concept of communitarian thinking suggests that all those involved in a corporation are potentially members of a single community. More recently, Etzioni (1998)
argued that the communitarian concepts have much in common with elements of stakeholder theory. Because DICTIONs variable commonality was based on Amitai Etzionis
(1993) concept of communitarian thinking, future research could examine correlations
between the articulation of elements of stakeholder management (such as mentions of
corporate social responsibility, specific stakeholder groups, or other words that highlight
shareholder engagement) and DICTIONs measure of communality. More than a decade
ago, Barry and Elmes (1997) predicted that strategic discourses would be more likely to
incorporate elements of communitarian characterizations. Using a comparable data source
over time (such as annual report texts), this proposition could be tested using DICTION.
In addition to the value of DICTIONs master variables, the individual dictionaries provided by DICTION may also be useful in many research streams. For example, previous
research relied on human scored schema to content analyze elements of excuses as measures of defensive impression management (Arndt & Bigelow, 2000). The DICTION dictionaries for denial and blame may provide useful for future research examining defensive
impression management. Likewise, DICTION could be a valuable tool to examine attributions of executives in organizational narratives.
Future research could benefit by empirically illustrating the differences provided by
DICTION in comparison to and in concert with other content analysis techniques. Our
illustration of DICTION demonstrated that this technique may provide predictive insights
749
above and beyond those gleaned from human scored techniques. Examining independent
and interaction effects between human coding and DICTION could provide for a rich
understanding of the nuances of mission content. The incorporation of multiple forms of
content analysis could also benefit substantive research questions. For example, scholars
have suggested that mission statement alignment may be a key source of performance differences (Crotts, Dickson, & Ford, 2005), and future tests of alignment between university
and business school mission statements that rely on manual-coded and computer-aided
techniques including DICTION may provide additional insights as to the linkage between
mission content and performance.
Conclusion
Our results suggest that DICTION can be extremely useful in research involving language usage because DICTION taps into difficult-to-measure unobservables inherent
in strategic management research (Godfrey & Hill, 1995). DICTION allows for the integration of theoretically rich word count techniques while also providing the benefits of
artificial intelligence techniques that are rare in strategic management research. At the
same time, DICTION has many of the abilities of other computer-aided content analysis
packages such as the ability to create user-defined dictionaries. We are encouraged
by DICTIONs potential and flexibility, and it is our hope that strategic management
researchers will add this powerful technique to their methodological toolkits.
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Organizational Research

The Application of DICTION to Content Analysis Research in Strategic Management

The Research Methods Division of The Academy of Management

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The Application of DICTION

narrative; content; semiotic analysis

trategic management scholars frequently rely on content analysis to collect difficult to

Organizational Research Methods

Content Analysis in Strategic Management

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Short, Palmer / Content Analysis Research

Conducting Content Analysis

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Organizational Research Methods

The DICTION Software

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Content analysis software that uses 31

Can be adapted to specifically address

NUD IST software

Advantages of Each Technique

Pairwise comparison technique

User must specify content

Time consuming and somewhat

User must specify search words

User must specify search words

Hodgkinson, Maule, and Bown

Gephart (1993), Academy of

Bligh, Kohles, and Meindl

Limited ability to detect

User must specify search words

Example Using This Technique

Organizational Research Methods

DICTION Master Variables

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Short, Palmer / Content Analysis Research

DICTION Calculated Variables

Additional Features of DICTION

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Organizational Research Methods

A third additional feature of DICTION is that it allows researchers to create composite

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Written statements from the

Speeches, radio addresses and

Speeches, radio addresses and

Press releases, e-mails, speeches

Narrative Document Analyzed

Hunter (2003), Journal of

DICTION dictionaries were used to assess

Aust (2004), Communication

The author used DICTION to develop 36 custom

Bligh, Kohles, and Meindl

Bligh, Kohles, and Meindl

Rogers, Dillard, and Yuthas

DICTION was used to compare statements from

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Use of communicative action

Applies DICTION and a

Examines the link between

Examination of the use of

Chairmans letters and

CEO letters to shareholders