A Meta‐Analysis of the Twin Transition: The Impact of Digitalization on Firms' Eco‐Innovation

In the twin transition, firms pursue digitalization and environmental sustainability simultaneously, an effort that draws growing academic interest. However, empirical insights into the relationship between digital technologies and eco‐innovation remain lacking. With a quantitative synthesis and meta‐regression of 38 empirical studies published in high‐impact journals, encompassing 587 effect sizes, the current research clarifies the heterogeneous nature of this relationship across technology types and environmental outcomes. Digitalization is positively and statistically significantly associated with eco‐innovation. Across technology types, artificial intelligence, digital innovation, and smart product platforms show the strongest positive associations, while robotics and Industry 4.0 technologies yield weaker evidence. Across environmental outcomes, the results indicate robust positive associations with green innovation but negative or null associations on average for decarbonization. In revealing that digitalization alone might not be sufficient to achieve emissions reductions without complementary environmental strategies, this study contributes to twin transition literature and clarifies the heterogeneous nature of the digitalization‐eco‐innovation relationships. For managers seeking to balance digital investments with environmental objectives, it also offers practical recommendations.