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.