Abstract for: Understanding Value Creation under Dynamic Complexity: An example from Integrated Reporting practices
The paper attempts to offer a glimpse of the dynamic complexity involved in creating value in companies. The case is based on a new accounting report, Integrated Reporting , that aims at providing all the needed principles and guidelines to assist companies in developing an integrated reporting process able to convey a holistic view of their organizations in terms of operations, risks, opportunities and drivers generating value for all the relevant shareholders and stakeholders in the short, medium and long term. To evaluate the dynamic complexity, this paper combines Integrated Reporting with resource mapping, a combined System Dynamics (SD) and Strategic Management technique, on the basis of the common idea that organizational resources (or type of capitals, according to terminology) are interconnected and ought to be managed simultaneously to create value in a holistic perspective. Our contribution to SD is to present a promising avenue to communicate dynamic complexity to different audiences by reflecting the causal relationships, and feedback loops, between type of capitals (resources) and governance actions. The analysis can also communicate fundamental leverage points where the value creation process lies.