“The Twin Transformation illusion: testing the limits of digital and sustainability synergy in fashion” (2026), by Azhar Aitnazarova et al. Business and Management research paper. Original abstract below, unchanged. A free PDF is available.

The Twin Transformation illusion: testing the limits of digital and sustainability synergy in fashion

Azhar Aitnazarova, Oumaima Haj Ammar, Sándor Remsei · October 22, 2026 · Business and Management

Abstract

Introduction This study examines whether digital and sustainable capabilities independently and jointly influence firm performance in the global fashion industry. While prior research assumes that digital transformation and sustainability initiatives enhance competitiveness, empirical evidence on their combined effects remains limited. Methods Drawing on dynamic capabilities and institutional theory, digital capabilities are conceptualized as sensing mechanisms, whereas sustainable capabilities are framed as transforming mechanisms. The study employs a time-lagged quantitative design based on 73 publicly listed fashion firms. Capability adoption is measured using computer-assisted text analysis with syntactic dependency parsing, allowing substantive strategic actions to be distinguished from symbolic disclosures. Results Neither digital nor sustainable capabilities exhibit significant universal effects on firm performance, and no evidence of a synergistic interaction is identified. Although digital capabilities initially appear to benefit fast fashion firms under parametric estimation, this segment-specific advantage is not robust to bootstrap validation or heteroskedasticity-consistent standard errors. Sustainability initiatives show no statistically significant association with either operational performance or market valuation. The market valuation model is not significant overall; therefore, its coefficients are not interpreted. Discussion The divergence between operational performance and market valuation is consistent with a theoretical legitimacy gap, although this remains a conceptual proposition requiring further testing. Overall, the findings highlight the context-dependent nature of capability effectiveness and challenge the assumed complementarity of digital and sustainability transformation.

Free PDF DOI: 10.3389/frsus.2026.1977391