The dynamics of financial information and non-financial environmental, social and governance information in the strategic decision-making process
Journal of Strategy and Management
ISSN: 1755-425X
Article publication date: 14 May 2019
Issue publication date: 8 August 2019
Abstract
Purpose
The purpose of this paper is to link the fields of research on strategic decision (SD) making and integrated reporting (IR) and advances knowledge of the concept of integrated thinking by describing how financial information and non-financial environmental, social and governance (ESG) information are used in different phases of the strategic decision-making process (SDMP).
Design/methodology/approach
In total, 15 senior executives from twelve different industries were asked about the importance of different types of information within SDMPs. The data were analyzed by means of content analysis.
Findings
The authors derive a four-phase model and explicate the utilization of financial information and non-financial ESG information within each phase. The findings show that both types of information affect SDMPs, but the importance of each type differs among the phases.
Practical implications
This study offers practitioners a yardstick against which to compare how they use different types of information throughout the SDMP.
Originality/value
This paper provides a conceptual model of integrated thinking in SD making by connecting two separate fields of research. This connection will permit deeper study of the field of information and its implications for SD making. The present investigation shows that IR can promote integrated thinking in companies, as the broader range of information at hand allows companies to form a holistic picture of internal management questions and incorporate information that has not been previously prepared or associated with existing information.
Keywords
Citation
Esch, M., Schulze, M. and Wald, A. (2019), "The dynamics of financial information and non-financial environmental, social and governance information in the strategic decision-making process", Journal of Strategy and Management, Vol. 12 No. 3, pp. 314-329. https://doi.org/10.1108/JSMA-05-2018-0043
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited