Developing forward-looking orientation in integrated reporting

Purpose - According to the “strategic focus and future orientation” principle of the integrated reporting ( ) framework, should provide information useful to support investors in assessing the future financial performance of organizations. This study aims to support the operationalization of this function by improving the forward-looking orientation of the integrated report. Design/methodology/approach - Basing on the backward- and forward-looking disclosure in and the dynamic resource-based view (DRBV), this study develops an explorative case study building a quantitative simulation model based on an integrated report. Findings - This study provides useful insights into how operationalizing the “future orientation” and obtaining more quantitative information on the organization’s capacity to create value in the future by applying DRBV and quantitative simulation modeling. Research limitations/implications - The article presents one case study to explore the method suggested to improve the forward-looking orientation. Additional case studies applying the same research design should be certainly useful to refine the method. Practical implications - Supporting the forward-looking orientation, this study provides additional information for the decision-making process of investors, thus contributing to the efficient and productive allocation of capital. Originality/value - Few studies have investigated forward-looking information in integrated reports, highlighting the existence of an “information gap” referred to such disclosure. Overcoming these previous results, the study provides useful insights on how to improve the forward-looking orientation.