Abstract
In management studies, the relevance of intellectual capital (IC) in value creation processes has been a research topic for many years. Several attempts have been made to develop measurement and reporting systems for this relevant source of value, but managerial literature has highlighted the limits and difficulties of some of those endeavors. Integrated reporting, the general purpose of which is to provide transparent and integrated disclosure, has also entered this field with the aim of improving disclosure of intangibles, along with a strategic perspective on communication. An accurate description of a company’s IC is indeed one of the focal elements of an integrated report. This paper describes an exploratory study based on the case study research method of three companies, all of which have applied the integrated reporting IIRC framework and are operating in different business contexts. Following a performative approach, the first aim of this work is to verify the ability of integrated reporting to support the mobilization of IC and to encourage companies to take advantage of this process. This should lead to positive effects on management and governance practices, with respect to both external and internal users. Additionally, from a critical and performative perspective, this research investigates how business context influences the processes of measurement, management, and reporting of IC.
Similar content being viewed by others
References
Abeysekera, I. (2006). The project of intellectual capital disclosure: Researching the research. Journal of Intellectual Capital, 7(1), 61–77.
Abeysekera, I. (2013). A template for integrated reporting. Journal of Intellectual Capital, 14(2), 227–245.
Bagnoli, C., & Redigolo, G. (2016). Business model in IPO prospectuses: Insights from Italian Innovation Companies. Journal of Management and Governance, 20(2), 261–294.
Bañegil Palacios, T. M., & Sanguino Galván, R. (2007). Intangible measurement guidelines: A comparative study in Europe. Journal of Intellectual Capital, 8(2), 192–204.
Baxter, P., & Jack, S. (2008). Qualitative case study methodology: Study design and implementation for novice researchers. The Qualitative Report, 13(4), 544–559.
Berg, B. L. (2004). Qualitative research methods for the social sciences. Boston: Pearson.
Bini, L., Dainelli, F., & Giunta, F. (2017). Is a loosely specified regulatory intervention effective in disciplining management commentary? The case of performance indicator disclosure. Journal of Management and Governance, 21(1), 63–91.
Boedker, C. (2010). Ostensive versus performative approaches for theorising accounting-strategy research. Accounting, Auditing & Accountability Journal, 23(5), 595–625.
Bontis, N. (1998). Intellectual capital: An exploratory study that develops measures and models. Management Decision, 36(2), 63–76.
Bozzolan, S., Favotto, F., & Ricceri, F. (2003). Italian annual intellectual capital disclosure. Journal of Intellectual Capital, 4(4), 543–558.
Bukh, P. N. (2003). The relevance of intellectual capital disclosure: A paradox? Accounting, Auditing & Accountability Journal, 16(1), 49–56.
Burgman, R., & Roos, G. (2007). The importance of intellectual capital reporting: Evidence and implications. Journal of Intellectual Capital, 8(1), 7–51.
Busco, C., Frigo, M. L., Quattrone, P., & Riccaboni, A. (2014). Leading practices in integrated reporting: Management accountants will guide their companies on the journey to value creation. Strategic Finance, 12(9), 23–32.
Catasús, B., Ersson, S., Gröjer, J., & Yang Wallentin, F. (2007). What gets measured gets … on indicating, mobilizing and acting. Accounting, Auditing & Accountability Journal, 20(4), 505–521.
Catasús, B., & Gröjer, J. (2006). Indicators: On visualizing, classifying and dramatizing. Journal of Intellectual Capital, 7(2), 187–203.
Chen Goh, P., & Pheng Lim, K. (2004). Disclosing intellectual capital in company annual reports: Evidence from Malaysia. Journal of Intellectual Capital, 5(3), 500–510.
Cheng, M., Green, W., Conradie, P., & Romi, A. (2014). The international integrated reporting framework: Key issues and future research opportunities. Journal of International Financial Management & Accounting, 25(1), 90–119.
Chiucchi, M. S. (2013a). Measuring and reporting intellectual capital: Lessons learnt from some interventionist research projects. Journal of Intellectual Capital, 14(3), 395–413.
Chiucchi, M. S. (2013b). Intellectual capital accounting in action: Enhancing learning through interventionist research. Journal of Intellectual Capital, 14(1), 48–68.
Chiucchi, M. S., & Montemari, M. (2016). Investigating the “fate” of intellectual capital indicators: A case study. Journal of Intellectual Capital, 17(2), 238–254.
Choong, K. K. (2008). Intellectual capital: Definitions, categorization and reporting models. Journal of Intellectual Capital, 9(4), 609–638.
Cinquini, L., Passetti, E., Tenucci, A., & Frey, M. (2012). Analyzing intellectual capital information in sustainability reports: Some empirical evidence. Journal of Intellectual Capital, 13(4), 531–561.
Daum, J. H. (2003). Intangible assets and value creation. Chichester: Wiley.
de Villiers, C., Rinaldi, L., & Unerman, J. (2014). Integrated reporting: Insights, gaps and an agenda for future research. Accounting, Auditing & Accountability Journal, 27(7), 1042–1067.
de Villiers, C., & Sharma, U. (2017). A critical reflection on the future of financial, intellectual capital, sustainability and integrated reporting. Critical Perspectives on Accounting. https://doi.org/10.1016/j.cpa.2017.05.003.
de Villiers, C., Venter, E. R., & Hsiao, P.-C. K. (2016). Integrated reporting: Background, measurement issues, approaches and an agenda for future research. Accounting & Finance, 57(4), 937–959.
Denzin, N. K., & Lincoln, Y. S. (2005). The Sage handbook of qualitative research. Thousand Oaks: Sage Publication.
Dumay, J. (2009). Intellectual capital measurement: A critical approach. Journal of Intellectual Capital, 10(2), 190–210.
Dumay, J., Bernardi, C., Guthrie, J., & Demartini, P. (2016). Integrated reporting: A structured literature review. Accounting Forum, 40(3), 166–185.
Dumay, J., Bernardi, C., Guthrie, J., & La Torre, M. (2017). Barriers to implementing the international integrated reporting framework: A contemporary academic perspective. Meditari Accountancy Research, 25(4), 461–480.
Dumay, J., & Cai, L. (2014). A review and critique of content analysis as a methodology for inquiring into IC disclosure. Journal of Intellectual Capital, 15(2), 264–290.
Dumay, J., & Dai, T. (2017). Integrated thinking as a cultural control? Meditari Accountancy Research, 25(4), 574–604.
Dumay, J., & Garanina, T. (2013). Intellectual capital research: A critical examination of the third stage. Journal of Intellectual Capital, 14(1), 10–25.
Dumay, J., & Rooney, J. (2011). “Measuring for managing?” An IC practice case study. Journal of Intellectual Capital, 12(3), 344–355.
Eccles, R. G., & Krzus, M. P. (2010). One report: Integrated reporting for a sustainable strategy. Chichester: Wiley.
Eccles, R. G., Krzus, M. P., & Ribot, S. (2014). The integrated reporting movement: Meaning, momentum, motives, and materiality. Hoboken: Wiley.
Edmonson, A. C., & McManus, S. E. (2007). Methodological fit in management field research. Academy of Management Review, 32(4), 1155–1179.
Edvinsson, L. (2013). IC 21: Reflections from 21 years of IC practice and theory. Journal of Intellectual Capital, 14(1), 163–172.
Edvinsson, L., & Malone, M. S. (1997). Intellectual capital: Realizing your company’s true value by finding its hidden brainpower. New York: HarperBusiness.
Eisenhardt, K. M. (1989). Building theories from case study. Academy of Management Review, 14(4), 532–550.
Ferenhof, H. A., Durst, S., Zaniboni Bialecki, M., & Selig, P. M. (2015). Intellectual capital dimensions: State of the art in 2014. Journal of Intellectual Capital, 16(1), 58–100.
Flower, J. (2015). The international integrated reporting council: A story of failure. Critical Perspectives on Accounting, 27(March), 1–17.
Frias-Aceituno, J. V., Rodriguez-Ariza, L., & Garcia-Sanchez, I. M. (2013). The role of the board in the dissemination of integrated corporate social reporting. Corporate Social Responsibility and Environmental Management, 20(4), 219–233.
Garanina, T., & Dumay, J. (2017). Forward-looking intellectual capital disclosure in IPOs. Journal of Intellectual Capital, 18(1), 128–148.
García-meca, E., Parra, I., Larrán, M., & Martínez, I. (2005). The explanatory factors of intellectual capital disclosure to financial analysts. European Accounting Review, 14(1), 63–94.
Gerpott, T. J., Thomas, S. E., & Hoffmann, A. P. (2008). Intangible asset disclosure in the telecommunications industry. Journal of Intellectual Capital, 9(1), 37–61.
Giuliani, M. (2016). Sensemaking, sensegiving and sensebreaking: The case of intellectual capital measurements. Journal of Intellectual Capital, 17(2), 218–237.
Giuliani, M., Chiucchi, M. S., & Marasca, S. (2016). A history of intellectual capital measurements: From production to consumption. Journal of Intellectual Capital, 17(3), 590–606.
Giuliani, M., & Marasca, S. (2011). Construction and valuation of intellectual capital: A case study. Journal of Intellectual Capital, 12(3), 377–391.
Guthrie, J., Ricceri, F., & Dumay, J. (2012). Reflections and projections: A decade of Intellectual Capital Accounting Research. British Accounting Review, 44(2), 68–82.
Incollingo, A., & Bianchi, M. (2016). The connectivity of information in integrated reporting. Empirical evidence from international context. Financial Reporting, 7(2), 55–78.
International Integrated Reporting Council (IIRC). (2013). The international IR framework. London.
Lev, B. (2001). Intangibles: Management, measurement, and reporting. Washington D.C.: Brookings Institution Press.
Lev, B., & Zambon, S. (2003). Intangibles and intellectual capital: An introduction to a special issue. European Accounting Review, 12(4), 597–603.
Melloni, G. (2015). Intellectual capital disclosure in integrated reporting: An impression management analysis. Journal of Intellectual Capital, 16(3), 661–680.
Melloni, G., Stacchezzini, R., & Lai, A. (2016). The tone of business model disclosure: An impression management analysis of the integrated reports. Journal of Management and Governance, 20(2), 295–320.
Milne, M. J., & Gray, R. (2013). W(h)ither ecology? The triple bottom line, the global reporting initiative, and corporate sustainability reporting. Journal of Business Ethics, 118(1), 13–29.
Mouritsen, J. (2006). Problematising intellectual capital research: Ostensive versus performative IC. Accounting, Auditing & Accountability Journal, 19(6), 820–841.
Mouritsen, J., Johansen, M. R., Larsen, H. T., & Bukh, P. N. (2001a). Reading an intellectual capital statement. Journal of Intellectual Capital, 2(4), 359–383.
Mouritsen, J., Larsen, H. T., & Bukh, P. N. (2001b). Intellectual capital and the “capable firm”: Narrating, visualising and numbering for managing knowledge. Accounting, Organizations and Society, 26(7–8), 735–762.
Nielsen, C., Nikolaj Bukh, P., Mouritsen, J., Rosenkrands Johansen, M., & Gormsen, P. (2006). Intellectual capital statements on their way to the stock exchange. Journal of Intellectual Capital, 7(2), 221–240.
Nonaka, I., & Takeuchi, H. (1995). The knowledge-creating company: How Japanese companies create the dynamics of innovation. New York: Oxford University Press.
O’Donovan, G. (2002). Environmental disclosures in the annual report. Accounting, Auditing & Accountability Journal, 15(3), 344–371.
Oliveira, L., Lima Rodrigues, L., & Craig, R. (2010). Intellectual capital reporting in sustainability reports. Journal of Intellectual Capital, 11(4), 575–594.
Patten, D. M. (1991). Exposure, legitimacy, and social disclosure. Journal of Accounting and Public Policy, 10(4), 297–308.
Pedrini, M. (2007). Human capital convergences in intellectual capital and sustainability reports. Journal of Intellectual Capital, 8(2), 346–366.
Perego, P., Kennedy, S., & Whiteman, G. (2016). A lot of icing but little cake? Taking integrated reporting forward. Journal of Cleaner Production, 136(Part A), 53–64.
Pucci, T., Simoni, C., & Zanni, L. (2015). Measuring the relationship between marketing assets, intellectual capital and firm performance. Journal of Management and Governance, 19(3), 589–616.
Qu, S. Q., & Dumay, J. (2011). The qualitative research interview. Qualitative Research in Accounting & Management, 8(3), 238–264.
Rappaport, A. (1986). Creating shareholder value. A guide for managers and investors. New York: The Free Press.
Stacchezzini, R., Melloni, G., & Lai, A. (2016). Sustainability management and reporting: The role of integrated reporting for communicating corporate sustainability management. Journal of Cleaner Production, 136(Part A), 102–110.
Stewart, T. A. (1997). Intellectual capital: The new wealth of organizations. New York: Doubleday.
Sveiby, K. E. (1997). The new organizational wealth: Managing & measuring knowledge-based assets. San Francisco: Berrett-Koehler.
Tayles, M., Bramley, A., Adshead, N., & Farr, J. (2002). Dealing with the management of intellectual capital: The potential role of strategic management accounting. Accounting, Auditing & Accountability Journal, 15(2), 251–267.
White, G., Lee, A., & Tower, G. (2007). Drivers of voluntary intellectual capital disclosure in listed biotechnology companies. Journal of Intellectual Capital, 8(3), 517–537.
WICI. (2016). WICI intangibles reporting framework (Version 1.). WICI.
Yi, A., & Davey, H. (2010). Intellectual capital disclosure in Chinese (mainland) companies. Journal of Intellectual Capital, 11(3), 326–347.
Yin, R. K. (2015). Case study research: Design and methods (5th ed.). London: Sage Publication.
Zambon, S. (2016). Ten years after: The past, the present and the future of scholarly investigation on intangibles and intellectual capital. Journal of Intellectual Capital, 17(1), 45–67.
Zambon, S., & Guenther, T. W. (2011). Special issue: Measuring and managing intangibles for accounting use. Journal of Management Control, 22(3), 237–239.
Zambon, S., & Marzo, G. (Eds.). (2007). Visualising Intangibles: Measuring and Reporting in the Knowledge Economy. Aldershot: Ashgate.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Badia, F., Dicuonzo, G., Petruzzelli, S. et al. Integrated reporting in action: mobilizing intellectual capital to improve management and governance practices. J Manag Gov 23, 299–320 (2019). https://doi.org/10.1007/s10997-018-9420-1
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10997-018-9420-1