Uncovering dynamic complexity in annual reports: a methodological approach using resource mapping

Abstract

This study explores the role of qualitative system dynamics (SD) models in representing and analyzing the information of corporate annual reports by uncovering their hidden “dynamic complexity.” The study employs a specific qualitative SD technique, resource mapping, and outlines a methodology to apply it in practice. This study has several contributions. First, it provides methodological guidelines and practical insights on how to apply qualitative SD, using stock-and-flow diagrams, in the field of corporate reporting to represent visually and analyze the dynamic complexity implicit in businesses. Second, it underlines the performative role of accounting together with qualitative SD. Specifically, it provides useful insights into how to use qualitative SD in the accounting field to enhance both internal analysis and external communication, thereby supporting decision-making processes. Third, it shows how to integrate different discipline-related technical languages, thereby bridging differences in backgrounds, skills, and expertise that might characterize intended readers and users. © 2023 The Authors. System Dynamics Review published by John Wiley & Sons Ltd on behalf of System Dynamics Society.