Why/How are Integrated Reporting Practices Adopted/Diffused? Evidence From Public Listed Companies in Sri Lanka

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Nawarathna Liyanage Erandi Abeywardana
S.M. Ferdous Azam
Kevin Low Lock Teng


Manuscript type: Research paper
Research aims: This study explores the factors affecting and the internal
mechanisms employed by companies to manage their integrated reporting
Design/Methodology/Approach: The qualitative study is conducted
through semi-structured interviews with 15 officers responsible for the
integrated reporting practices of public listed companies in Sri Lanka.
Research findings: The study found that relative advantage,
compatibility, complexity, trialability, and observability affect the
adoption of integrated reporting practices. Under the internal mechanism,
it was found that sustainability reporting helped the adoption, and
companies used their own ways to collect and manage information.
Despite the companies’ duration of practice, the constellations of
structures, cultures, and reporting practices with which integrated
reporting is managed change within the companies. Furthermore, the
study showed the success stories of integrated reporting. 

Theoretical contribution/Originality: The study is the first South
Asian and emergent market study to identify the enablers of integrated
reporting by employing the diffusion of innovation theory as the
theoretical foundation and internal mechanism.
Practitioner/Policy implication: This study provides insight into
the dynamic processes that operate within the framework of the
organisational change that has taken place from this perspective and
demonstrates how integrated reporting can be incorporated into the
organisational change process. The experience of these organisations
allows others that intend to embrace integrated reporting to choose the
optimal way to implement it and use integrated reporting.
Research limitations/Implications: Although much effort was taken to
ensure that the study comprised successful IR businesses that displayed
best practices in IR, this research study was confined to a small number
of 15 public listed companies who participated.


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