Dynamic Capabilities for the Twin Transformation Climb: A Capability Maturity Model

Abstract Digital transformation and sustainability transformation are at the top of organizations’ agendas to remain competitive. While guidance on both transformations exists separately, even more research on integrating digital and sustainability transformation, namely twin transformation, is required. Specifically, deeper knowledge about relevant twin transformation capabilities and progress is needed for effective implementation. To enhance the understanding and provide corresponding guidance, we developed a twin transformation capability maturity model focusing on dynamic capabilities required to realize twin transformation based on a structured literature review and interviews with 13 experts. Further, we demonstrated its use with a technology service provider. Our contribution is twofold: First, accounting for organizations’ twin transformation starting points in terms of their digitalization and sustainability experience and expertise, we reveal three pathways to becoming a twin transformer. Second, our work provides an overview of 45 relevant twin transformation capabilities structured along six capability dimensions and four maturity stages. Our work also provides relevant practical implications supporting organizations in assessing their twin transformation maturity building the foundation for targeted capability development.