The Role of Supplier Trust in Enabling the Twin Transition

The twin transition, the concurrent pursuit of digital and green transformation, requires organizations to develop specific dynamic capabilities. The present study examines how a Dutch textile company successfully transitioned from a linear to a circular business model. It identifies supplier trust as a critical yet underexplored enabler. Drawing on Dynamic Capability Theory and a longitudinal single-case study spanning 2021 to 2026, the study finds that trust-based supplier relationships underpin two key organizational dynamic capabilities: data analytic capability and sustainable supplier management capability. Supplier trust facilitates the cross-organizational data flows needed for evidence-based sustainability decision-making, while simultaneously enabling the collaborative R&D investments required for circular supply chain development. The findings challenge the assumption that the twin transition is primarily a technological challenge. Instead, the relational capabilities are foundational preconditions for effective digitalization.