Rationales for integrated reporting adoption and factors impacting on the extent of adoption

Robertson, Fiona; Samy, Martin

doi:10.1108/sampj-02-2019-0042

Cited by 27 publications

(42 citation statements)

References 66 publications

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“…The 83 BSCs resulting from the action research were analyzed using NVivo software. This qualitative analytical software is increasingly used in management research relating to sustainable development (Belinski et al , 2020; Elsayed and Ammar, 2020; Robertson and Samy, 2020; Bubicz et al , 2021). Indeed, it offers a transparent and realistic method of data analysis (Dalkin et al , 2021).…”

Section: Methodsmentioning

confidence: 99%

Institutional pressure and real estate balanced scorecard indicators

Rasolofo-Distler

2022

SAMPJ

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Purpose This paper aims to discuss the impact of institutional pressures on the selection of the performance indicators in 83 balanced scorecards (BSC) used in French real estate companies. The author studied the way in which two factors that are representative of institutional pressures in the real estate sector – namely, “ecology” and “digital innovation” – were incorporated into the BSC causal chains. Design/methodology/approach The author’s methodology is that of action research. To analyze the balance of indicators between short and long term, the author classified the companies according to their strategic acuity, i.e. their ability to balance an organizational vision (near vision) and an environmental one (distance vision) when choosing their performance indicators. This resulted in a company classification with three categories: emmetropic, hypermetropic and slightly myopic. Findings This research enabled to observe that the selected ecological indicators in BSCs derive mainly from coercive institutional pressure. Hence, in companies with fewer legal requirements in ecological matters, the selected ecological indicators are included in the BSC causal chain, in that they are used as a commercial argument with a view to improving financial performance. These results are similar to the reactionary and reputational perspectives of the sustainability business case. With regard to the incorporation of digital innovation indicators into BSCs, the author found that the companies that have the most digital innovation indicators are those that mobilize the most ecological indicators. Digital innovation indicators are part of the companies’ internal process perspective and are linked to organizational learning indicators. These results are similar to the responsible and collaborative perspectives of the sustainability business case. The author also found that the companies incorporate digital indicators into their BSCs by institutional mimicry insofar as the selected indicators are not always consistent with a strategic rationale but are chosen by copying what is done in other companies. Research limitations/implications The author’s research has two main limitations related to the methodology used. On the one hand, the mobilization of part-time management students to have access to companies can influence the emergence of mimetic isomorphisms. Indeed, these students follow the same training and advise the companies that welcome them according to the training they have followed. On the other hand, the author’s research stops at the development of the BSC. The author does not study the impacts or changes that occurred after the implementation of the tool. This could be the subject of future research on the appropriation and use of the BSC by the company’s actors and their impact on the optimization of global performance measurement system. Practical implications This study may be of interest to researchers and managers who wish to reconcile sustainable development and digital innovation in global performance management. It analyzes the impact of institutional pressures on the performance measurement system. It offers insights on how to integrate ecological indicators and digital innovation indicators into the BSC causal chains. It identifies the tensions that managers may face. It reports on practices adopted in the field by managers in action. Social implications This paper reveals the feasibility of measuring global performance integrating ecology and digital innovation. It responds to a preoccupation of recent years in academic research on how to reconcile corporate social responsibility and technological innovation. It shows that the companies that have the most digital innovation indicators are those that mobilize the most ecological indicators. However, it highlights the difficulties encountered by managers in the field when faced with institutional pressures. Originality/value The author’s reflection is in line with the literature of recent years that reconciles sustainable development and innovation. The author studied how “ecology” and “digital innovation” are incorporated into the BSC causal chains. To the best of the author’s knowledge, this is the first time this type of study has been conducted in the literature.

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Section: Methodsmentioning

confidence: 99%

Institutional pressure and real estate balanced scorecard indicators

Rasolofo-Distler

2022

SAMPJ

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“…The UK was selected as, in addition to the researcher's proximity to participants, <IR> research is low in this country (Dumay et al, 2016). This is despite a supportive regulatory environment which has facilitated many larger UK organisations in addressing some of the fundamental issues of <IR>, therefore providing a valuable arena for researching UK <IR> early adopters (Dumay et al, 2016;Robertson and Samy, 2019). Particularly, the past decade has seen an increase in the quality of information reported by UK companies, many of whom are global multi-nationals, and therefore organisations in other countries could benefit from the findings of UK <IR> research (PWC, 2020).…”

Section: Jgr 123mentioning

confidence: 99%

“…In <IR> literature, DOI theory has been emerging as a useful theory to investigate factors that impact the diffusion of <IR> practices. Robertson and Samy (2019) used DOI theory to investigate rationales for <IR> adoption and factors that impact the extent of adoption in the UK early adopter organisations. In a Sri Lanka context, Gunarathne and Senaratne (2017) examined how and why integrated reporting (IR) is diffused in Sri Lanka, Further, Robertson and Samy (2015), based on UK senior management perceptions of <IR> prior to the launch of the <IR> framework (<IRF>), investigated the likely adoption of <IR>, in addition to highlighting the limitations of current reporting practices using DOI as a theoretical lens.…”

Section: Literature Review 21 Diffusion Of Innovation Theorymentioning

confidence: 99%

“…Although <IR> is currently adopted globally by over 2000 organisations in 70 countries, the IIRC's vision of <IR> becoming the corporate reporting norm (IIRC, 2020) has been hampered by a lack of clarity surrounding definitions of <IR> and its key concepts of value creation and integrated thinking (Adams, 2015;Robertson and Samy, 2019). This is evidenced by recent research, based on the reports of 48 members of the IIRC Business Network, that highlighted that the quality of <IR> had declined in 2019, compared to three years previously, particularly in the areas of connectivity, value creation and the capitals that an organisation may depend on (ACCA, 2010).…”

Section: Introductionmentioning

confidence: 99%

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Social network influences on integrated reporting adoption and implementation – a UK perspective

Robertson

2021

JGR

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Purpose This paper aims to investigate social influences on the UK integrated reporting (<IR>) adoption and implementation. Design/methodology/approach The study was based on in-depth semi-structured interviews with 36 senior executives actively involved in <IR> within 17 organisations. Findings Main social influences on adoption externally were reported design consultants and to a lesser extent, external auditors, primarily to legitimise <IR>. Internal influences were board support for <IR>, with the main driver being the mind-set of the CFO/Chairman to drive sustainability throughout the organisation or to regain trust in society. Social influences aiding further diffusion at the implementation stage came from three external sources: business networks; report design consultants; and external auditors. Internal influences in driving <IR> diffusion within organisations were identified in five functional areas, with finance, sustainability and communications functions exerting the greatest external influence on the diffusion of <IR>. Research limitations/implications This research study was limited by the small sample of organisations that participated, although significant efforts were made to ensure that the sample incorporated the majority of early adopter UK organisations who demonstrated best practice in <IR>. Therefore, the findings are specific to the research context and do not represent statistical generalisations. Practical implications Empirical evidence identifying social influences from a practitioner perspective provides recommendations as to how <IR> may be further diffused in the future. Social implications <IR> creates the potential to significantly improve the long-term health of corporations and the external environment they impact through consideration of the three indivisible and integrated dimensions of sustainable development, the economy, society and the environment and can contribute to a sustainable society by providing the opportunity for organisations to respond to the UN Sustainable Development Goals. This highlights the significance of the research, which aims to gain insights into <IR> social influences which can assist in the adoption and implementation of <IR>. Originality/value This is the first comprehensive study of social influences on the <IR> adoption and implementation practices in the UK. It incorporates recommendations to improve the likelihood of subsequent adoption and diffusion of <IR> based on the findings.

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“…Author(s) Motivation Thoradeniya et al (2021) Efficient-choice and fashion motives Gerwanski (2020) Improve corporate image and achieve legitimacy Robertson and Samy (2020) Adoption because of both economic, sociological and management fashion rationales Adhariani and de Villiers (2019) To promote integrated thinking, improve communication, transparency and governance Higgins et al (2019) Greater recognition of value-creation, climate change and sustainability issues Al-Htaybat and Alberti-Alhtaybat (2018) To support the sustainability agenda Gibassier et al (2018) IR reflected the promise of a rational myth of integrating social and environmental dimensions to a financial report Lai et al (2018) To improve corporate accountability McNally and Maroun (2018) To better engage with stakeholders McNally et al (2017) Need to better understand stakeholder needs Chaidali and Jones (2017) How trust contributes to achieving acceptance of IR. Managers (preparers) felt IR was developed to serve the interests of professionals who comprise the IIRC coalition Del Baldo (2017) Enhances reputation amongst stakeholders, build trust and improve employee loyalty and motivation, strengthen the internal/external dissemination of values and vision and improve communication strategy Dumay and Dai (2017) To maintain and enhance their reputation as "trend setters" To comply with future regulatory pronouncements Guthrie et al (2017) To integrate strategy and sustainability and provide metrics McNally et al (2017) A compliance focussed exercise Silvestri et al (2017) For sustainable development purposes Haji and Anifowose (2016) IR adoption is mainly "ceremonial" rather than substantive.. That is, they offer "symbolic" gestures and continue to exaggerate positive information.…”

Section: Motivations For Adoption and Diffusion Of Integrated Reportingmentioning

confidence: 99%

An exploration of the motivating factors for the preparation of an integrated report in contextual settings

Sciulli

Adhariani

2021

QRAM

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Purpose It is 10 years since the International Integrated Reporting Council (IIRC) was founded and the development of the IIRC Framework has been adopted by thousands of organisations. This paper aims to provide empirical evidence on the motivation for the preparation of integrated reports from a diffusion of innovation (DOI) perspective. Design/methodology/approach Three case study organisations operating in distinct industry sectors are investigated to ascertain the motivation for the adoption of integrated reporting. DOI theory was adopted as the theoretical lens to guide the research design. An interpretative approach is used to ascertain common themes from an analysis of semi-structured interview transcripts of senior managers and directors. Findings The findings from these case studies support the main tenets of DOIs theory. The evidence suggests that senior executive leadership plays a significant role in commencing the integrated reporting “journey”. This study finds evidence of DOI characteristics, such as relative advantage, compatibility and observability with respect to the objectives of senior managers. The main motivations for the production of the integrated report were to demonstrate leadership and innovation to stakeholders, overcome the perceived inadequacies of the disclosures required for traditional annual reports, to enhance transparency and to satisfy the changing demands of investors and other stakeholders. Research limitations/implications This project captures the perceptions and views of preparers of the integrated report rather than its users. In addition, only three case study sites were investigated, therefore, generalisations would be spurious. Practical implications Other organisations yet to consider the production of integrated reports or to re-assess their stakeholder relationships, could use these findings to plan for their own future reporting obligations. Originality/value The organisations investigated were a superannuation fund, a multinational company and a charity. All are recognised leaders in their respective industries.

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Rationales for integrated reporting adoption and factors impacting on the extent of adoption

Cited by 27 publications

References 66 publications

Institutional pressure and real estate balanced scorecard indicators

Institutional pressure and real estate balanced scorecard indicators

Social network influences on integrated reporting adoption and implementation – a UK perspective

An exploration of the motivating factors for the preparation of an integrated report in contextual settings

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