Twin Transition: Theoretical Background, Empirical Insights, And Integrated Approach

This study explores the concept of Twin Transition (TT), defined as the integrated process of aligning digital transformation with sustainability to achieve operational efficiency, environmental responsibility, and organisational resilience. Rooted in theoretical foundations and supported by expert insights, the research emphasises TT’s dual potential to drive innovation and address global challenges through advanced digital tools such as the Internet of Things and artificial intelligence. The study employs a design science research methodology to iteratively develop and validate the Integrated Approach to Twin Transition. This approach comprises five phases: Initial Assessment and Strategic Alignment, Goal Setting and Prioritisation, Designing Transformation Systems, Implementation and Continuous Monitoring, and Skill Development and Cultural Shift. Empirical findings highlight the importance of modular strategies, real-time monitoring, and inclusive decision-making to overcome challenges in TT implementation. Our research delivers actionable recommendations for organisations to integrate sustainability and digitalisation effectively. While the study focusses on Germany’s regulatory and industrial landscape, the proposed approach is adaptable to diverse global contexts.