Financial and Non-Financial Information on Strategy Management Process; A Systematic Literature Review


  • Paul Ombai The Catholic University of Eastern Africa
  • Dr. Kiflemariam Abraham The Catholic University of Eastern Africa
  • Dr. Lawrence Odollo The Catholic University of Eastern Africa



This paper focused on the role of both financial and non-financial information on strategy management processes using a PRISMA framework on existing literature. Specifically, this paper sought to determine the recent trends on financial and non-financial information, the varied financial and non-financial information constructs, the financial and non-financial information theories, and finally, the influence of financial and non-financial information on strategy management process. Financial ratios of liquidity, solvency and profitability are useful in assessing the impact of financial information on strategy management process. Organizations are coming to the realization that financial metrics alone do not address the needs of informed stakeholders who are keen to on a comprehensive picture of the organization and the impacts of their operations. Recent technological advances in Artificial intelligence, cloud computing and machine learning have had significant impacts on real time big data processing with accompanying realization that stakeholders will continuously demand for more information that impact the strategy management processes and success. These technological advances have also led to amplification of algorithmic trading, credit scoring and risk assessment. This study hinges on stakeholder theory, Resource Based View Theory as well as information asymmetry theory. A significant finding of the study is on the pivotal role played by non-financial information in shaping strategic decision-making processes whereas financial information has historically driven strategic planning. The study revealed the very interdependent nature of both financial and non-financial information on strategy management processes.

Author Biographies

Paul Ombai, The Catholic University of Eastern Africa

Catholic University of Eastern Africa

Dr. Kiflemariam Abraham , The Catholic University of Eastern Africa

Lecturer, Catholic University of Eastern Africa

Dr. Lawrence Odollo, The Catholic University of Eastern Africa

Lecturer, Catholic University of Eastern Africa


Al-Dmour, A. H., Abbod, M., & Al-Balqa, N. S. (2018). The impact of the quality of financial reporting on non-financial business performance and the role of organizations demographic' attributes (type, size and experience). Academy of Accounting and Financial Studies Journal. Volume 22, Number 1, 1-18

Andrades Peña, J., & Jorge, M. L. (2019). Examining the amount of mandatory non-financial information disclosed by Spanish state-owned enterprises and its potential influential variables. Meditari Accountancy Research, 27(4), 534-555.

Anggraini, A., & Wulan, M. (2015). Faktor financial-non financial dan tingkat pengungkapan Islamic Social Reporting (ISR). Jurnal Akuntansi Dan Keuangan Islam, 3(2), 161-184.

Artene, A., Bunget, O. C., Dumitrescu, A. C., Domil, A. E., & Bogdan, O. (2020). Non-financial information disclosures and environmental protection—evidence from Romania and Greece. Forests, 11(8), 814.

Arvidsson, S. (2011). Disclosure of non‐financial information in the annual report: A management‐team perspective. Journal of intellectual capital, 12(2), 277-300.

Bhimani, A., & Langfield-Smith, K. (2017). Structure, formality and the importance of financial and non-financial information in strategy development and implementation. Management accounting research, 18(1), 3-31.

Camilleri, M. A. (2018). Theoretical insights on integrated reporting: The inclusion of non-financial capitals in corporate disclosures. Corporate Communications: An International Journal, 23(4), 567-581.

Cardinaels, E., & van Veen-Dirks, P. M. (2010). Financial versus non-financial information: The impact of information organization and presentation in a Balanced Scorecard. Accounting, organizations and society, 35(6), 565-578.

Cicchiello, A. F., Marrazza, F., & Perdichizzi, S. (2023). Non‐financial disclosure regulation and environmental, social, and governance (ESG) performance: The case of EU and US firms. Corporate Social Responsibility and Environmental Management, 30(3), 1121-1128.

Cordazzo, M., Bini, L., & Marzo, G. (2020). Does the EU Directive on non‐financial information influence the value relevance of ESG disclosure? Italian evidence. Business Strategy and the Environment, 29(8), 3470-3483.

Dossi, A., & Patelli, L. (2010). You learn from what you measure: financial and non-financial performance measures in multinational companies. Long Range Planning, 43(4), 498-526.

Ersoy, A. P., Tuba, B. O. R. A., & Karabiyik, L. (2014). Effect of non-financial information on financial performance: evidence from Turkey. International Review of Economics and Management, 2(1), 1-18.

Hadi, H. A., Bakar, A. N., Noor, N. H. M., & El Ashfahany, A. (2022). The Value of Financial and Non-Financial Information towards Non-profit Organisations. Environment-Behaviour Proceedings Journal, 7(21), 349-355.

Haller, A., Link, M., & Groß, T. (2017). The term ‘non-financial information’–a semantic analysis of a key feature of current and future corporate reporting. Accounting in Europe, 14(3), 407-429.

Hernaus, T., Pejić Bach, M., & Bosilj Vukšić, V. (2012). Influence of strategic approach to BPM on financial and non‐financial performance. Baltic Journal of Management, 7(4), 376-396.

Herrador-Alcaide, T., & Hernandez-Solis, M. (2019). Empirical study regarding non-financial disclosure for social conscious consumption in the Spanish e-credit market. Sustainability, 11(3), 866.

Kori, B. W., Muathe, S., & Maina, S. M. (2020). Financial and non-financial measures in evaluating Performance: the role of strategic intelligence in the context of commercial banks in Kenya. International Business Research, 13(10), 130-130.

Krawczyk, P. (2021). Non-financial reporting—standardization options for SME sector. Journal of Risk and Financial Management, 14(9), 417.

Krištofík, P., Lament, M., & Musa, H. (2016). The reporting of non-financial information and the rationale for its standardisation. Business Administration and Management. 2, XIX, 157-175. DOI: 10.15240/tul/001/2016-2-011

Manes-Rossi, F., Nicolò, G., & Argento, D. (2020). Non-financial reporting formats in public sector organizations: a structured literature review. Journal of Public Budgeting, Accounting & Financial Management, 32(4), 639-669.

Manes-Rossi, F., Tiron-Tudor, A., Nicolò, G., & Zanellato, G. (2018). Ensuring more sustainable reporting in Europe using non-financial disclosure—De facto and de jure evidence. Sustainability, 10(4), 1162.

Mio, C., & Venturelli, A. (2013). Non‐financial information about sustainable development and environmental policy in the annual reports of listed companies: Evidence from Italy and the UK. Corporate Social Responsibility and Environmental Management, 20(6), 340-358.

Monteiro, A. P., Vale, J., Leite, E., Lis, M., & Kurowska-Pysz, J. (2022). The impact of information systems and non-financial information on company success. International Journal of Accounting Information Systems, 45, 100557.

Omran, M., Khallaf, A., Gleason, K., & Tahat, Y. (2021). Non-financial performance measures disclosure, quality strategy, and organizational financial performance: a mediating model. Total Quality Management & Business Excellence, 32(5-6), 652-675.

Orens, R., & Lybaert, N. (2010). Determinants of sell‐side financial analysts’ use of non‐financial information. Accounting and Business Research, 40(1), 39-53.

Osadchy, E. A., Akhmetshin, E. M., Amirova, E. F., Bochkareva, T. N., Gazizyanova, Y. Y., & Yumashev, A. V. (2018). Financial statements of a company as an information base for decision-making in a transforming economy. European Research Studies Journal. Volume XXI, Issue 2, 339-350.

Pizzi, S., Del Baldo, M., Caputo, F., & Venturelli, A. (2022). Voluntary disclosure of Sustainable Development Goals in mandatory non‐financial reports: The moderating role of cultural dimension. Journal of International Financial Management & Accounting, 33(1), 83-106.

Rezaee, Z., & Tuo, L. (2017). Voluntary disclosure of non-financial information and its association with sustainability performance. Advances in accounting, 39, 47-59.

Sisaye, S. (2021). The influence of non-governmental organizations (NGOs) on the development of voluntary sustainability accounting reporting rules. Journal of Business and Socio-economic Development, 1(1), 5-23.

Sonnerfeldt, A. & Pontoppidan, C. (2020). The Challenges of Assurance on Non-financial Reporting. Accounting, Economics, and Law: A Convivium, 10(2), 20180050.

Theriou, N. G. (2015). Strategic management process and the importance of structured formality, financial and non-financial information. European Research Studies, Volume XVIII, Issue (2). 3-28

Tirado-Beltrán, J. M., Fuertes-Fuertes, I., & Cabedo, J. D. (2020). Donor reaction to non-financial information covering social projects in nonprofits: A Spanish case. Sustainability, 12(23), 10146.

Venturelli, A., Caputo, F., Leopizzi, R., & Pizzi, S. (2018). The state of art of corporate social disclosure before the introduction of non-financial reporting directive: A cross country analysis. Social responsibility journal, 15(4), 409-423.




How to Cite

Ombai, P., Kiflemariam , A., & Odollo, L. (2024). Financial and Non-Financial Information on Strategy Management Process; A Systematic Literature Review. Journal of Strategic Management, 8(1), 33–64.




Most read articles by the same author(s)