Abstract for: Matching Integrated Reporting with System Dynamics for Integrated Thinking: Focus on the Airline Sector

The principles and values according to which modern organisations manage their operational processes and report performance are under scrutiny. New reporting guidelines were subsequently developed over the last years, usually providing multidimensional frameworks for accounting reporting and strategic management. In detail, this work focuses on “Integrated Reporting” (IR) (developed by the International Integrated Reporting Council) which is one of the latest novelties in corporate reporting and is aimed to provide a comprehensive communication of an organisation’s results through an annual “integrated report”. However, if on one hand IR can assist decision-makers to better manage their organisation’s value creation and communication processes, on the other hand IR still lacks specific tools and principles in order to clearly represent the business domain under investigation and support policy analysis and strategy formulation in that context. To this aim, this work explores the potentialities of System Dynamics (SD) in combination with IR for a coherent and comprehensive integrated thinking approach to management and decision-making. In detail, focusing on the airline industry and the Low Cost Carriers business model, this work aims to discuss how to develop an IR-based SD model and an IR-based SD Interactive Learning Environment to support decision-making and strategy formulation.