What comes first? The chicken–egg relationship between integrated thinking and reporting

Abstract This study provides new empirical evidence on the relationship between integrated thinking (IT) and integrated reporting (IR). It contributes to the chicken–egg debate between IT and IR by answering the question ‘what comes first?’ and examines the determinants of IT and IR for a sample of European listed companies. The findings from both the empirical analysis and interviews with IR preparers show that IT leads to IR, and vice versa, thus creating a virtuous circle where the decision to publish an integrated report favours an inclusive decision-making process, as well as embracing the IT journey favours the adoption of IR. These results could drive companies’ internal choices and policymakers’ initiatives aimed at progressing an integrated organisational culture by identifying the differential drivers of IR and IT and suggest that companies’ journey towards integration can start either from the integrated report (IR develops IT) or from developing an IT culture that creates a fertile background for IR (IT leads to IR).