Unpacking the role of integrated reporting as an internal mechanism of organisational change

Purpose This study aims to provide insights into the role of Integrated Reporting (IR) as an internal mechanism of organisational change. Design/methodology/approach This exploratory study employs an inductive and grounded approach into how firms in the Netherlands utilise IR. The Netherlands presents a mature sustainability reporting context, with several large organisations adhering to the International Integrated Reporting Council's principles for their corporate reporting practices. Findings Our study reveals a repertoire of four practices through which IR may act as an internal mechanism of organisational change: (1) Value creation narration, (2) Organisational alignment, (3) Integrated management and (4) Stakeholder impact reflection. Practical implications This study sheds light on how IR serves as an internal change mechanism to enable internal alignment, adjust organisational strategies and inform managerial decision-making processes. Such mechanisms may influence managers' decisions to adopt IR and prompt current users to further advance the value derived from its use in internal management and reporting systems. Originality/value Our study advances understanding of IR as an internal change mechanism by developing an empirically grounded model of differentiated practices that may be utilised by firms. Furthermore, it offers insight into how IR may support managerial decision-making through deeper recognition of value creation and impact.