The concept of twin transition describes the simultaneous pursuit of digitalization and environmental sustainability in industry practices. This study explores the meaning of the concept within the manufacturing industry and its practical application. Although Estonia is a global leader in digital innovation, digital integration within its businesses remains limited, and environmental practices often fall short of industry standards. The paper presents findings from a qualitative study of the Estonian metal manufacturing industry, based on interviews conducted both in person and over the phone. Additionally, governmental reports, policies, and projects were analyzed to validate the findings. Findings indicate that micro enterprises associate twin transition with specific tangible objectives and prioritize survival over innovation, while small and medium enterprises weigh trade-offs between cost efficiency and market demand in their transition efforts. Since most organizations are still uncertain about the twin transition and interpret and apply the concept differently depending on their size and location, a “one size fits all” approach is ineffective. Results provide a nuanced understanding of the twin transition, highlighting its varied interpretations and applications across enterprise sizes, and offer practical recommendations for fostering industry-wide transformation. The study’s key recommendations include fostering a deeper understanding of the twin transition, encouraging enterprises to share the best practices for implementation, and providing tailored support to manufacturing companies of all sizes.
Chen, J., Lim, C. P., Tan, K. H., Govindan, K. and Kumar, A. 2021. Artificial intelligence-based human-centric decision support framework: an application to predictive maintenance in asset management under pandemic environments. Ann. Oper. Res.
https://doi.org/10.1007/s10479-021-04373-w
Despeisse, M., Chari, A., González Chávez, C. A., Monteiro, H., Machado, C. G. and Johansson, B. 2022. A systematic review of empirical studies on green manufacturing: eight propositions and a research framework for digitalized sustainable manufacturing. Prod. Manuf. Res., 10(1), 727–759.
https://doi.org/10.1080/21693277.2022.2127428
Drechsler, W. 2018. Pathfinder: e-Estonia as the β-version. JeDEM, 10(2), 1–22.
https://doi.org/10.29379/JEDEM.V10I2.513
European Commission. 2020. A New Industrial Strategy for Europe.
https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52020DC0102 (accessed 2023-05-10).
European Commission. 2021. Industry 5.0: Towards a Sustainable, Human-Centric and Resilient European Industry.
https://data.europa.eu/doi/10.2777/308407 (accessed 2023-05-10).
El Hilali, W., El Manouar, A. and Janati Idrissi, M. A. 2020. Reaching sustainability during a digital transformation: a PLS approach. Int. J. Innov. Sci., 12(1), 52–79.
https://doi.org/10.1108/IJIS-08-2019-0083
EML. 2021. Eesti masina- ja metallitööstuse ettevõtete olukord ning teadus- ja arendustegevuse vajadused (The situation of Estonian machinery and metal industry companies. Research and development needs).
https://www.etag.ee/wp-content/uploads/2022/05/EML.pdf (accessed 2023-03-08).
Feroz, A. K., Zo, H. and Chiravuri, A. 2021. Digital transformation and environmental sustainability: a review and research agenda. Sustainability, 13(3), 1530.
https://doi.org/10.3390/su13031530
Fetting, C. 2020. The European Green Deal. ESDN Office, Vienna, Austria.
Ghobakhloo, M. 2020. Industry 4.0, digitization, and opportunities for sustainability. J. Clean. Prod., 252, 119869.
https://doi.org/10.1016/j.jclepro.2019.119869
Pizzagalli, S. L., Kuts, V. and Otto, T. 2021. User-centred design in industrial collaborative automated systems. Proc. Estonian Acad. Sci., 70(4), 436–443.
https://doi.org/10.3176/proc.2021.4.10
Rahnama, H., Johansen, K., Larsson, L. and Rönnbäck, A. Ö. 2022. Collaboration in value constellations for sustainable production: the perspective of small technology solution providers. Sustainability, 14(8), 4794.
https://doi.org/10.3390/su14084794
Rajnai, Z. and Kocsis, I. 2018. Assessing industry 4.0 readiness of enterprises. In 2018 IEEE 16th World Symposium on Applied Machine Intelligence and Informatics (SAMI), Kosice and Herlany, Slovakia, 7–10 February 2018. IEEE, 000225–000230.
https://doi.org/10.1109/SAMI.2018.8324844
Rupeika-Apoga, R. and Petrovska, K. 2022. Barriers to sustainable digital transformation in micro-, small-, and medium-sized enterprises. Sustainability, 14(20), 13558.
https://doi.org/10.3390/su142013558
Spaltini, M., Acerbi, F., De Carolis, A., Terzi, S. and Taisch, M. 2024. Toward a technology roadmapping methodology to enhance sustainable and digital transition in manufacturing. Prod. Manuf. Res., 12(1).
https://doi.org/10.1080/21693277.2023.2298572
Vrchota, J., Pech, M., Rolínek, L. and Bednář, J. 2020. Sustainability outcomes of green processes in relation to Industry 4.0 in manufacturing: systematic review. Sustainability, 12(15), 5968.
https://doi.org/10.3390/su12155968
