This guide shows how to insert a Word or Excel document as an icon in a Word document.
Open 'Word' > Click 'Insert' > click 'Object'. Click the tab Create from file. Browse to and select the Word file you want to insert. Check the box for "Display as icon" > Click OK.
Double-clicking the icon will launch the file in a separate word window.
Also, other object types can be inserted i.e. Adobe Acrobat, Excel