Introducing Twin Transitions in Family Businesses: A Triple‐Bottom‐Line Perspective

This paper explores the twin transition in family businesses, examining the parallel development of digital technologies and sustainable business practices, both of which are part of the current European agenda for a more sustainable future. While not widely recognised for their investments in disruptive innovation and digitalisation, family businesses (FBs) are more inclined to perform incremental changes, often driven by a longstanding commitment to sustainability and collaboration with internal and external stakeholders. This contrast makes them an ideal subject for a more in‐depth exploration of these transformative trends. The aim of this study is to adopt a broader perspective in twin‐transition analysis, incorporating social and economic performance alongside environmental sustainability in relation to digital transformation. Therefore, we establish a connection between the triple‐bottom‐line (TBL) approach and digital innovation in the unique reality of FBs. Our research approach is based on interviews conducted across multiple studies that explore FB dynamics and digitalisation in different industries and countries, supplemented by insights from secondary data. We analyse data through a directed qualitative content analysis. By adopting a broader perspective on sustainability—shifting from an exclusive focus on the environmental dimension to a TBL approach—our findings position FBs as key players in the twin transition, excelling at both addressing sustainability challenges and fostering digital innovation. These companies should prioritise aligning their strategies with equitable, viable and bearable principles in line with the TBL approach by fostering socio‐emotional wealth, engaging younger generations in digital innovation and implementing work–life balance initiatives that enhance employee satisfaction and sustainability. Most of these strategies can also be replicated by non‐family businesses, establishing FBs as exemplary leaders in the twin‐transition journey.