Twin transition in SMEs : Influence of espoused values, lived values, and leadership style on the transformation processes

In the evolving business landscape, companies face the dual challenge of digital and sustainable transformation, known as the twin transition. This study examines how organisational values and leadership styles influence these transformation processes for small and medium-sized enterprises. Nine semi-structured interviews with experts from different organisations were conducted and analysed using grounded theory approaches. The findings reveal that a fit of espoused and lived values is essential for driving successful transformations in small and medium-sized enterprises. Transformational leadership emerges as a second key factor, with authentic, fair, and communicative leaders significantly enhancing the transformation process. Expected benefits and applied practices showed the ability to fuel the twin transition. Different barriers may occur during this process calling for management attention and actions.