The concurrent adoption of digitalization and circular practices, known as twin transitions, is widely regarded as crucial for enhancing firm performance. However, there is limited empirical research examining the impact of twin transitions on firm performance and the complementary practices that facilitate their success. This study addresses this gap by analyzing survey data from 188 Swedish manufacturing firms using partial least squares structural equation modeling. The findings reveal that while digitalization practices positively influence firm performance, their impact is mediated by circular practices, suggesting a sequential relationship between these twin transition practices. Additionally, the study highlights the significant moderating roles of supply chain orchestration and supply chain business model innovation as essential complementary practices. These findings contribute to the theoretical discourse on twin transitions, circular supply chains, and circular business models. Furthermore, the study offers practical guidance for firms and managers seeking to implement and enhance twin transition strategies effectively.
