WE HAVE ALWAYS DONE IT THAT WAY — BARRIERS AND ENABLERS FOR THE TWIN TRANSFORMATION OF SMEs

Martin Leipziger (), Janina Burtscher (), Dominik K. Kanbach, Kaisu Puumalainen () and Sascha Kraus
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Martin Leipziger: HHL Leipzig Graduate School of Management, Chair of Strategic Entrepreneurship, Jahnallee 59, Leipzig 04109, Germany
Janina Burtscher: ��LUT University, LUT Business School, Yliopistonkatu 34, Lappeenranta 53850, Finland
Dominik K. Kanbach: HHL Leipzig Graduate School of Management, Chair of Strategic Entrepreneurship, Jahnallee 59, Leipzig 04109, Germany‡University of Warsaw, Faculty of Management, ul. Szturmowa 1/3, Warsaw 02-678, Poland
Kaisu Puumalainen: ��LUT University, LUT Business School, Yliopistonkatu 34, Lappeenranta 53850, Finland
Sascha Kraus: �University of Siegen, School of Economic Disciplines, Unteres Schloß 3, 57072 Siegen, Germany¶University of Johannesburg, Department of Business Management, Johannesburg 2006, South Africa

International Journal of Innovation Management (ijim), 2025, vol. 29, issue 05n06, 1-41

Abstract: While research on digital and sustainable transformations in small and medium-sized enterprises (SMEs) is well-established, studies on their simultaneous pursuit, referred to as twin transformation (TT), remain scarce. This study explores this underexamined phenomenon through 30 semi-structured interviews with representatives of SMEs in Germany and Austria. The findings identify seven key barriers and enablers, with corporate culture and strategy emerging as critical factors influencing a successful transformation. As both an enabler and a barrier, cultural dynamics significantly shape the trajectory of twin transformation efforts. The study also reveals a perceived asymmetry between digital and sustainable transformations, with interviewees generally viewing digital transformation as a self-reinforcing driver of sustainability. In contrast, they perceived the reciprocal influence of sustainable transformation as less pronounced. These findings advance the theoretical understanding of transformation dynamics while offering practical guidance for scholars, entrepreneurs, and SME managers, particularly in addressing cultural change to enhance TT outcomes.

Keywords: TT; barriers; enablers; digital transformation; sustainable transformation; SMEs (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1142/S1363919625400043

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