The Clarets have bought five players this summer at the cost of just £2m as they prepare for life back in the Premier League.
Dyche feels that it would go against the mantra of his team to make a huge splash in the transfer market and cause disharmony amongst his squad.
He told the Daily Mail: "We are built on a real group mentality rather than individuals. If we bought one big star you'd get this weird thing in the camp.
"You'd have baggage of all the players who have done well for you whose contracts are nowhere near that of the signing you've just made.
"It would hurt us so, if my chairman came to me and said 'Look, we will buy that £20m player', I would say I don't think it is appropriate for this club at this time. It would harm the group and unquestionably we have talent here already."
Burnley face Chelsea in their Premier League opener on August 16.