Integrated thinking, orchestration of the six capitals and value creation

Abstract

Purpose This paper aims to explore how the integrated thinking of a chief executive officer (CEO) impacts the management’s orchestration of the six capitals to create value in an organization. Design/methodology/approach Following a case study approach, data was gathered on two business organizations in Sri Lanka through interviews, focus group discussions and documentary analyzes. Thematic and cross-case analyzes were used in analyzing the data based on an analytical framework that was developed using systems and resource orchestration theories. Findings The study finds that the integrated thinking perspective of the CEO determines which capitals to embrace in the pursuit of value creation by an organization. A broader perspective on the integrated thinking of the CEO can lead to a sustainable perspective for value creation focusing on integrated corporate responsibility. On the contrary, a constrained perspective of integrated thinking can lead to a business case perspective for value creation that focuses mainly on the key areas of responsibility extended for operational efficiency. These different perspectives result in differences in value creation in organizations over time. Practical implications The capitals embraced in the integrated thinking perspective of a CEO should be translated into objectives, strategies and performance measurement and implemented at every level of the company to create value. This perspective of a CEO can be institutionalized through the adoption of accredited management systems. To foster value creation, managers should use a variety of information technology platforms and internal networks. Originality/value This is one of the first studies that explore how the perception of integrated thinking of the CEO impacts value creation in an organization through a combination of resource orchestration and systems thinking theory lenses.

Adoption of integrated reporting in Sri Lanka: coverage and trend

“…The findings of this study suggest that some difficulties exist in identifying forward-looking information and quantifying industry trends based on information provided under “performance,” which will deter the investors and other stakeholders from evaluating a company’s ability to create value over the medium and long term (PWC, 2013). Moreover, the limited connection exhibited among different components, such as directors’ remuneration and value creation and business model with strategy and value creation, signifies a lack of attention toward integrated thinking that hinders creating value in the long term (Herath et al , 2021; Institute of Directors in Southern Africa, 2016; IIRC, 2013b). Further, based on their worldwide sample, Pistoni et al (2018) suggest that the truly innovative content elements such as “basis of presentation,” “outlook” and “business model” need to be further improved by all IR adopters.…”

“…IR has gained global popularity because of its potential to change the mindset of the corporate decision-makers, which, in turn, strengthens the sustainability actions and impacts into the organizational strategic planning process, decision-making and performance measurement systems (Adams, 2015; Robertson and Samy, 2015; Serafeim, 2015). Thus, IR brings all the financial and non-financial information together, and enhances the integrated thinking related to identifying material factors that have a significant influence on creating value over time (du Toit, 2017; Herath et al , 2021; Reimsbach et al , 2018).…”

Understanding integrated thinking: evidence from the field, the development of a framework and avenues for future research

“…The rise and development of ITR practices are occurring in a context where the concepts and principles that define how contemporary organizations plan, measure and report their performances are being questioned and redesigned across the world (Andon et al , 2015; Hall et al , 2015; Humphrey et al , 2017). These debates have regained momentum in the aftermath of the financial crisis when the notion and functioning of capitalism, the ultimate purpose of the business, as well as the concept of corporate value creation (Porter and Kramer, 2011), have all been questioned and placed under the spotlight.…”

A review of integrated thinking research in developed and developing economies

“…Second, the filtering protocols were widened to include "integrated reporting" and "sustainability reporting". Papers dealing with "integrated reporting" or "sustainability reporting" may provide evidence of integrated thinking in action (Adams et al, 2020;Herath et al, 2021) despite the fact that "integrated thinking" may not be referred to explicitly in the sources' titles, keywords and abstracts. The additional papers were screened to ensure that they did not deal only with integrated reporting and sustainable development in general but examined how strategies and business models, operating processes, management practices, accounting systems and governance structures are being developed in response to the multi-capital business logic envisioned by the IIRC (2021a, b).…”