Integrated Thinking: Concept, Measurement and Economic Benefits

Stakeholders are demanding more information about how organisations create value. This has led to rapid developments in corporate reporting, particularly the provision of non-financial information relating to an organisation’s sustainability. Integrated Reporting, with its underlying management philosophy of Integrated Thinking, is a recent and popular development in corporate reporting. Integrated Reporting combines financial and non-financial information into a single report aimed at multiple stakeholders. The production of this report supposedly catalyses Integrated Thinking within organisations, focusing managers on decisions that prioritise sustainable value creation. Integrated Thinking promoters claim that it improves collaboration and internal decision-making. Others consider it a passing management fad. This thesis aims to gain a deeper understanding of Integrated Thinking in practice, develop a measure for it and explore its association with economic benefits. This thesis critically examines the body of primary empirical evidence on Integrated Thinking using a structured literature review. The findings are synthesised and developed into a conceptual framework highlighting four hallmarks of Integrated Thinking found in companies experiencing benefits from its adoption. These hallmarks are developed into a novel dictionary-based measure for Integrated Thinking based on narrative disclosures made by management. Multiple tests of construct validity are conducted on this new measure using large-scale text analysis techniques. Using linear regression to test the new Integrated Thinking measure on a unique panel data set reveals Integrated Thinking to be associated with positive economic benefits, including improved realised operating cash flows and return on assets. Several further research avenues are proposed. This thesis contributes to a deeper understanding of Integrated Thinking, with important findings for academics, practitioners and corporate reporting bodies. It also provides a novel, widely applicable measure of Integrated Thinking for use in subsequent research. The overall conclusion of the thesis is that Integrated Thinking is positively associated with real economic benefits but may not be as easy to achieve in practice as its promoters suggest.

Name thesis:degree_name

PhD

Level thesis:degree_level

Doctoral

Discipline thesis:degree_discipline

Accounting

Grantor dc:publisher

ResearchSpace@Auckland

Year dc:date.issued

2023

Author dc:creator

• Dimes, Ruth Annabel Joan

Advisors dc:contributor.advisor

• De Villiers, Charl
• Chen, Lily

Statement dc:rights

• Items in ResearchSpace are protected by copyright, with all rights reserved, unless otherwise indicated.

Licence dc:rights.uri

• https://researchspace.auckland.ac.nz/docs/uoa-docs/rights.htm

Handle dc:identifier.uri

https://hdl.handle.net/2292/64889

OAI identifier oai:identifier

oai:researchspace.auckland.ac.nz:2292/64889