IDEAS home Printed from https://ideas.repec.org/a/bla/sysdyn/v39y2023i4p299-335.html
   My bibliography  Save this article

Uncovering dynamic complexity in annual reports: a methodological approach using resource mapping

Author

Listed:
  • Martin Kunc
  • Federico Barnabè
  • Maria Cleofe Giorgino

Abstract

This study explores the role of qualitative system dynamics (SD) models in representing and analyzing the information of corporate annual reports by uncovering their hidden “dynamic complexity.” The study employs a specific qualitative SD technique, resource mapping, and outlines a methodology to apply it in practice. This study has several contributions. First, it provides methodological guidelines and practical insights on how to apply qualitative SD, using stock‐and‐flow diagrams, in the field of corporate reporting to represent visually and analyze the dynamic complexity implicit in businesses. Second, it underlines the performative role of accounting together with qualitative SD. Specifically, it provides useful insights into how to use qualitative SD in the accounting field to enhance both internal analysis and external communication, thereby supporting decision‐making processes. Third, it shows how to integrate different discipline‐related technical languages, thereby bridging differences in backgrounds, skills, and expertise that might characterize intended readers and users. © 2023 The Authors. System Dynamics Review published by John Wiley & Sons Ltd on behalf of System Dynamics Society.

Suggested Citation

  • Martin Kunc & Federico Barnabè & Maria Cleofe Giorgino, 2023. "Uncovering dynamic complexity in annual reports: a methodological approach using resource mapping," System Dynamics Review, System Dynamics Society, vol. 39(4), pages 299-335, October.
    • Handle: RePEc:bla:sysdyn:v:39:y:2023:i:4:p:299-335
    DOI: 10.1002/sdr.1741
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/sdr.1741
    Download Restriction: no
    File URL: https://libkey.io/10.1002/sdr.1741?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Colin Eden, 1992. "On The Nature Of Cognitive Maps," Journal of Management Studies, Wiley Blackwell, vol. 29(3), pages 261-265, May.
    2. Pasi Aaltola, 2019. "Strategic thinking and accounting: potentials and pitfalls from a managerial perspective," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 30(3), pages 323-351, October.
    3. Aima Khan & Muhammad Azeem Qureshi & Pål Ingebrigt Davidsen, 2021. "A system dynamics model of capital structure policy for firm value maximization," Systems Research and Behavioral Science, Wiley Blackwell, vol. 38(4), pages 503-516, August.
    4. H A Akkermans & K E van Oorschot, 2005. "Relevance assumed: a case study of balanced scorecard development using system dynamics," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(8), pages 931-941, August.
    5. Barry Richmond, 1993. "Systems thinking: Critical thinking skills for the 1990s and beyond," System Dynamics Review, System Dynamics Society, vol. 9(2), pages 113-133, June.
    6. Maria Cleofe Giorgino & Federico Barnabè & Martin Kunc, 2020. "Integrating qualitative system dynamics with accounting practices: The case of integrated reporting and resource mapping," Systems Research and Behavioral Science, Wiley Blackwell, vol. 37(1), pages 97-118, January.
    7. Garry Carnegie & Lee Parker & Eva Tsahuridu, 2021. "It's 2020: What is Accounting Today?," Australian Accounting Review, CPA Australia, vol. 31(1), pages 65-73, March.
    8. Hakan Yasarcan, 2023. "The four main elements of dynamic complexity," System Dynamics Review, System Dynamics Society, vol. 39(2), pages 171-179, April.
    9. Melse, Eric, 2006. "The Financial Accounting Model from a System Dynamics' Perspective," MPRA Paper 7624, University Library of Munich, Germany.
    10. Federico Cosenz & Guido Noto, 2016. "Applying System Dynamics Modelling to Strategic Management: A Literature Review," Systems Research and Behavioral Science, Wiley Blackwell, vol. 33(6), pages 703-741, November.
    11. M H Kunc & J D W Morecroft, 2009. "Resource-based strategies and problem structuring: using resource maps to manage resource systems," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 60(2), pages 191-199, February.
    12. Anthony Hopwood, 1992. "Accounting calculation and the shifting sphere of the economic," European Accounting Review, Taylor & Francis Journals, vol. 1(1), pages 125-143.
    13. Aima Khan & Muhammad Azeem Qureshi & Pål Ingebrigt Davidsen, 2020. "How do oil prices and investments impact the dynamics of firm value?," System Dynamics Review, System Dynamics Society, vol. 36(1), pages 74-100, January.
    14. Christina Boedker, 2010. "Ostensive versus performative approaches for theorising accounting‐strategy research," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 23(5), pages 595-625, June.
    15. E F Wolstenholme, 1999. "Qualitative vs quantitative modelling: the evolving balance," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 50(4), pages 422-428, April.
    16. Cristiano Busco & Fabrizio Granà & Maria Federica Izzo, 2023. "Beyond persuasive representations of facts: “figuring out” what sustainable value creation means in practice," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 37(1), pages 393-426, June.
    17. Skærbæk, Peter & Tryggestad, Kjell, 2010. "The role of accounting devices in performing corporate strategy," Accounting, Organizations and Society, Elsevier, vol. 35(1), pages 108-124, January.
    18. Federico Barnabè & Maria Cleofe Giorgino & Martin Kunc, 2019. "Visualizing and managing value creation through integrated reporting practices: a dynamic resource-based perspective," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 23(2), pages 537-575, June.
    19. Carmine Bianchi & William C. Rivenbark, 2014. "Performance Management in Local Government: The Application of System Dynamics to Promote Data Use," International Journal of Public Administration, Taylor & Francis Journals, vol. 37(13), pages 945-954, November.
    20. Donald MacKenzie, 2006. "An Engine, Not a Camera: How Financial Models Shape Markets," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262134608, December.
    21. David Rees & Robert Y. Cavana & Jacqueline Cumming, 2018. "Using cognitive and causal modelling to develop a theoretical framework for implementing innovative practices in primary healthcare management in New Zealand," Health Systems, Taylor & Francis Journals, vol. 7(1), pages 51-65, January.
    22. Naser, Kamal & Nuseibeh, Rana, 2003. "RETRACTED: User's perception of corporate reporting: evidence from Saudi Arabia," The British Accounting Review, Elsevier, vol. 35(2), pages 129-153.
    23. Rossen Kazakov & Martin Kunc, 2016. "Foreseeing the Dynamics of Strategy: An Anticipatory Systems Perspective," Systemic Practice and Action Research, Springer, vol. 29(1), pages 1-25, February.
    24. Bruce Leauby & Kathryn Szabat & Jayne Maas, 2010. "Concept Mapping—an Empirical Study in Introductory Financial Accounting," Accounting Education, Taylor & Francis Journals, vol. 19(3), pages 279-300.
    25. Ö Pala & J A M Vennix & T van Mullekom, 2003. "Validity in SSM: neglected areas," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 54(7), pages 706-712, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Guido A. Veldhuis & Dominique Blok & Maaike H.T. de Boer & Gino J. Kalkman & Roos M. Bakker & Rob P.M. van Waas, 2024. "From text to model: Leveraging natural language processing for system dynamics model development," System Dynamics Review, System Dynamics Society, vol. 40(3), July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Maria Cleofe Giorgino & Federico Barnabè & Martin Kunc, 2020. "Integrating qualitative system dynamics with accounting practices: The case of integrated reporting and resource mapping," Systems Research and Behavioral Science, Wiley Blackwell, vol. 37(1), pages 97-118, January.
    2. Divya Mishra & Amita Mital & Samir K. Srivastava, 2023. "Role of international strategic alliances in internationalization of business group affiliated firms—A system dynamics approach," Systems Research and Behavioral Science, Wiley Blackwell, vol. 40(3), pages 552-572, May.
    3. Martin Kunc, 2024. "Integrating system dynamics and scenarios: A framework based on personal experience," Futures & Foresight Science, John Wiley & Sons, vol. 6(1), March.
    4. Verdier, Marie-Anne & Boutant Lapeyre, Jennifer, 2023. "The myth of workforce reduction efficiency: The performativity of accounting language," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 90(C).
    5. Pucci, Richard & Skærbæk, Peter, 2020. "The co-performation of financial economics in accounting standard-setting: A study of the translation of the expected credit loss model in IFRS 9," Accounting, Organizations and Society, Elsevier, vol. 81(C).
    6. Federico Barnabè & Maria Cleofe Giorgino & Martin Kunc, 2019. "Visualizing and managing value creation through integrated reporting practices: a dynamic resource-based perspective," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 23(2), pages 537-575, June.
    7. Cosenz, Federico & Bivona, Enzo, 2021. "Fostering growth patterns of SMEs through business model innovation. A tailored dynamic business modelling approach," Journal of Business Research, Elsevier, vol. 130(C), pages 658-669.
    8. Kunc, Martin & O'Brien, Frances A., 2017. "Exploring the development of a methodology for scenario use: Combining scenario and resource mapping approaches," Technological Forecasting and Social Change, Elsevier, vol. 124(C), pages 150-159.
    9. Cuckston, Thomas, 2022. "Accounts of NGO performance as calculative spaces: Wild Animals, wildlife restoration and strategic agency," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 84(C).
    10. Boedker, Christina & Chong, Kar-Ming & Mouritsen, Jan, 2020. "The counter-performativity of calculative practices: Mobilising rankings of intellectual capital," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 72(C).
    11. Enzo Bivona & Federico Cosenz, 2021. "Designing a Multi‐Sided Platform business model assessment framework: a Dynamic Performance Management perspective," Systems Research and Behavioral Science, Wiley Blackwell, vol. 38(1), pages 93-107, January.
    12. Jan Bebbington & Tom Cuckston & C. Feger, 2021. "Biodiversity," Post-Print hal-03746729, HAL.
    13. Mennicken, Andrea & Miller, Peter & Samiolo, Rita, 2008. "Accounting for economic sociology," economic sociology. perspectives and conversations, Max Planck Institute for the Study of Societies, vol. 10(1), pages 3-7.
    14. Andreas Wieland & Wendy L. Tate & Tingting Yan, 2024. "A guided tour through the qualitative research city," Journal of Supply Chain Management, Institute for Supply Management, vol. 60(1), pages 3-12, January.
    15. Federico Cosenz & Vinicius Picanço Rodrigues & Francesco Rosati, 2020. "Dynamic business modeling for sustainability: Exploring a system dynamics perspective to develop sustainable business models," Business Strategy and the Environment, Wiley Blackwell, vol. 29(2), pages 651-664, February.
    16. Federico Cosenz & Guido Noto, 2016. "Applying System Dynamics Modelling to Strategic Management: A Literature Review," Systems Research and Behavioral Science, Wiley Blackwell, vol. 33(6), pages 703-741, November.
    17. Mingers, John & White, Leroy, 2010. "A review of the recent contribution of systems thinking to operational research and management science," European Journal of Operational Research, Elsevier, vol. 207(3), pages 1147-1161, December.
    18. Guido A. Veldhuis & Eefje M. Smits‐Clijsen & Rob P.M. van Waas, 2024. "Techniques to enhance the public policy impact of qualitative system dynamics models," System Dynamics Review, System Dynamics Society, vol. 40(4), October.
    19. Nazila Razi & Elizabeth More & Gensheng Shen, 2021. "Risk Implications for the Role of Budgets in Implementing Post-Acquisition Systems Integration Strategies," JRFM, MDPI, vol. 14(7), pages 1-24, July.
    20. Vollmer, Hendrik & Mennicken, Andrea & Preda, Alex, 2009. "Tracking the numbers: Across accounting and finance, organizations and markets," Accounting, Organizations and Society, Elsevier, vol. 34(5), pages 619-637, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:sysdyn:v:39:y:2023:i:4:p:299-335. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1111/0883-7066 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.