Head in the clouds, feet on the ground: navigating paradoxes in the twin transitions

Purpose In this study, we developed a competency-based framework for strategic adaptability in the context of the digital and green twin transitions. Building on paradox and dynamic capabilities theories, we clarified how paradoxical cognition translates into actionable competencies that connect individual adaptability with organisational adaptive capacity and agility. Design/methodology/approach We adopted a qualitative methodology grounded in constructivist grounded theory and drew empirical insights from six industries (hospitality, life sciences, agrifood, energy, information technology and financial services) through focus groups and executive interviews with human resources managers, innovation leaders and chief executives. Iterative coding and analysis allowed us to capture how organisations configure competencies to manage paradoxical demands. Findings We identified three interdependent competency domains – technical and achievement, innovation and relational – that enable organisations to manage and rebalance the four recurring paradoxes: learning, organising, belonging and performing (e.g. exploration/exploitation, short-term efficiency/long-term sustainability, digital scaling/green stewardship and autonomy/coordinating). Organisations that dynamically recombine and rebalance these domains sustain adaptability while addressing competing demands. Research limitations/implications We drew evidence from a single national context and six industries. Future researchers should test the framework longitudinally and cross-nationally to assess performance outcomes and boundary conditions. Practical implications Organisations should align recruitment, learning, and leadership development to navigate paradoxes and foster cross-boundary collaboration. Jointly cultivating technical expertise, innovation practices and relational skills can build the adaptive capacity and agility needed to meet simultaneous digital and green demands. Originality/value The study advances paradox theory by offering empirically grounded insights into paradoxical competencies as the microfoundations of dynamic capabilities. It shows how ongoing tensions due to the twin transitions become catalysts for competency development and organisational responsiveness, reframing adaptability as a systemic outcome of paradox navigation through interdependent configurations of technical, innovation and relational competencies.