Integrated Thinking and Firm Performance: Evidence from Sri Lankan Listed Companies

In recent years, integrated reporting (IR) has gained increasing prominence among Sri Lankan listed companies, driven by growing stakeholder expectations for holistic value creation. While prior research has extensively examined the relationship between IR and firm performance, the role of integrated thinking in influencing firm performance remains underexplored, particularly within emerging economy contexts. Accordingly, this study examines the extent to which integrated thinking is embedded in integrated reports published by Sri Lankan listed companies and analyses the impact of integrated thinking on firm performance. Adopting a quantitative research approach, the study analyses a sample of 60 listed companies that consistently adopted IR over a three-year period. Firm performance was measured using return on assets (ROA). The findings revealed a statistically significant positive relationship between integrated thinking and firm performance, indicating that companies exhibiting higher levels of integrated thinking tend to achieve superior financial outcomes. This study contributes to the IR literature by providing empirical evidence on the performance implications of integrated thinking in an emerging economy setting. From a practical perspective, the findings highlight the importance of embedding integrated thinking within organisational processes to support sustainable value creation, offering valuable insights for corporate managers, regulators, and policymakers seeking to enhance the effectiveness of IR practices.