A Typology of integrated Key Performance Indicators (iKPIs)

Abstract: This study develops a typology of Integrated Key Performance Indicators (iKPIs), a novel category of indicators that integrate financial and sustainability dimensions to provide a comprehensive view of organizational performance. As businesses increasingly face demands for transparency and accountability, traditional reporting frameworks have proven insufficient to address the interconnected financial and environmental performance challenges. Drawing on signaling theory and extensive literature on Key Performance Indicators (KPIs) and sustainability reporting, this research identifies nine core attributes of iKPIs. It systematically classifies them into four ideal types: (1) Core Stabilizers, (2) Process Monitors, (3) Strategic Pillars, and (4) Adaptive Progressors.

The findings provide actionable insights for researchers, regulators, and corporations. For researchers, the typology offers a structured framework for analyzing and categorizing iKPIs, enhancing the understanding of how integrated metrics align with stakeholder expectations. For regulators, the study emphasizes the importance of a limited yet consistent set of iKPIs to streamline reporting practices and enhance comparability. For corporations, the typology is a practical guide for selecting and implementing iKPIs that align with strategic goals, ensuring reliable and transparent reporting. This paper contributes to advancing integrated reporting practices, promoting aligning financial and sustainability goals, and fostering corporate accountability. It also highlights opportunities for future research to expand the typology as reporting practices evolve, ensuring its continued relevance in pursuing sustainable business practices.

Dounia Chlyeh began her PhD at Kühne Logistics University (KLU) in September 2022 under the supervision of Prof. Dr. Alexander Himme and Prof. Dr. Johannes Meuer. Her research focuses on Integrated Key Performance Indicators (iKPIs) within sustainability reporting, encompassing their classification, selection, practical design, and impact assessment.

Dounia holds a Bachelor of Science in Energy Systems Engineering from Gazi University in Ankara, a Master of Arts in Management from Ibn Haldun University in Istanbul, and a second master's degree in Resource Efficiency in Architecture and Planning (REAP) from HafenCity University in Hamburg.

During her bachelor's studies, she gained hands-on experience in solar energy, working with various companies in the field. As a research assistant during her first master’s program, Dounia published her first article in a top-tier academic journal. Before joining KLU, she worked as a PV consultant and project manager at PVI GmbH while completing her second master’s degree.