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

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.