The Twin Transition in Practice. Digital Technologies, Sustainability, and the Role of Family Ownership in Europe

This paper examines whether and to what extent digital technologies (DTs) foster the adoption of environmental sustainability (ES), and how this relationship is moderated by family ownership. Using data from approximately 14,000 European firms surveyed in the Flash Eurobarometer 486, we estimate a recursive simultaneous equation model via a conditional mixed-process (CMP) to address potential endogeneity concerns. Results indicate that digitalization has a positive influence on ES adoption, although the marginal effect declines as firms implement more DTs. Family firms exhibit a stronger overall commitment to sustainability than their non-family counterparts. However, because of their distinctive organizational traits, they tend to adopt ES practices less responsively as digitalization increases. Further analyses reveal heterogeneity across the sustainability practices. These findings underscore the relevance of ownership in shaping digitalization outcomes and contribute to the growing literature on the twin transition by informing more tailored policy strategies for an inclusive and effective green pathway.