IR in medium-sized firms: Is it possible to break the ice? An empirical investigation

Purpose – This work addresses the issue of IR (Integrated Reporting) implementation and diffusion within small and medium-sized enterprises (SMEs) and investigates why and how SMEs can ìperform the journey towards integrated reporting. Design/methodology/approach – An empirical research has been performed based on a case study relative to an Italian mid-sized enterprise that was part of the pivotal companies included among a working group aimed to producing a guidance designed at helping SMEs to implement an integrated report. Findings – Findings point out the positive impact and the importance of some enabling conditions such as: the direct involvement of the top management and entrepreneurial team, the involvement of external consultants in the IR process, and the adoption of a ‘step by step’ approach whose roadmap is spanned throughout several years. Originality/Value – Among the emerging literature focused on IR, both theoretical arguments and empirical research are almost entirely absent concerning SMEs. In order to enrich a still under-investigated topic, this work attempts to provide insights and discuss the reasons that can lead an SME to adopt IR and the possible way to reach this goal. Practical Implications – The work contributes to enrich both the managerial debate on both the benefits and critical issues relative to the diffusion of IR among SMEs, in a research stram that is currently underestimated