Navigating the Twin Transformation: How Digitalization and Sustainability Shape the Future

ABSTRACT Amid growing societal and scholarly interest in the interplay between sustainability transformation (ST) and digital transformation (DT), this study conducts a systematic literature review to advance the understanding of twin transformation (TT). Analyzing 65 peer‐reviewed articles, this review makes three key contributions: (1) It synthesizes the current state of TT research, uncovering critical gaps, including limited sectoral diversity, inconsistent terminology, and the dominance of digitally driven TT perspectives; (2) it proposes a synergy‐based framework illustrating the dynamic interdependencies between DT and ST; (3) proposes an updated definition of TT; and (4) outlines future research directions to deepen the exploration of TT. This study provides a foundational agenda for researchers and practitioners aiming to integrate and optimize the TT of digitalization and sustainability.