Understanding twin transition dynamics in the Estonian metal manufacturing industry

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.