Twin Transition and the Dual Initiative Approach - Impacts of a Parallel Pursuit of Sustainability and Digital Transformation

Abstract

Some policymakers are pushing for a twin transition of the economy, the simultaneous pursuit of sustainability and digital transformation. However, little research has been done on the efficacy of this approach. Generally, pursuing multiple goals can create problems due to limited resources leading to competition and goal conflict. This paper compares the sequential pursuit versus integrating sustainability into digital transformation strategies, analyzing the effects on organizational performance, effectiveness, & adaptability. The results from 184 organizations reporting data from an average span of over 8 years show a significant, positive effect of the interaction between the two transformation initiatives on these outlook variables, signaling the public policy intuition for twinning may be justified in this case, as the synergy between these transitions seemingly more than accounts for common coordination challenges.