This study aims to investigate the ethical, legal and social implications (ELSI) of digital transformation within digital innovation ecosystems (DIEs), particularly in the context of the Twin Transition, which integrates digital and green transformation. It seeks to highlight the agency and heterogeneity of actors within DIEs, emphasizing their active role in implementing strategies that align innovation with sustainability. By moving beyond a technology-centered perspective, the study contributes to the discourse on how DIE stakeholders navigate the intersection of digitalization and sustainability through collaborative innovation.
Using a three-phase qualitative research approach, this study first conducts a thematic analysis of academic literature on ELSI within DIEs, conceptualizing them as multi-actor ecosystems. It then applies a strengths, weaknesses, opportunities and threats (SWOT) analysis to identify the internal challenges and external pressures faced by the diverse participants in DIEs. Finally, it employs the TOWS framework to develop strategic, actor-specific recommendations for navigating the Twin Transition.
The research underscores that addressing ELSI is fundamental to achieving a responsible digital transformation that aligns with sustainable development. It highlights that the success of DIEs is not driven by centralized decision-making but by the collective actions and strategic choices of diverse stakeholders. By leveraging ecosystem-wide strengths and opportunities while mitigating weaknesses and threats, DIE participants can foster inclusive, ethical and socially responsible value creation.
The findings provide actionable insights for participants within DIEs, demonstrating how ELSI-informed strategies can guide digital transformation while ensuring technological progress remains equitable and responsible. It provides a structured methodology for ecosystem actors to assess risks, identify ethical challenges and develop governance mechanisms that support sustainable innovation.
By addressing the broader societal consequences of digital transformation, this research highlights the governance-related dimension of ELSI, stressing the need for a clear vision of the type of society that digital transformation seeks to build. It reinforces that DIEs must engage in active, inclusive decision-making to ensure that digital innovation contributes to equity, safety and long-term social welfare, ultimately shaping a responsible and sustainable digital future.
This study advances a human-centered, actor-driven approach to DIEs, moving beyond the implicit assumption of DIEs as self-governing entities. By embedding ELSI into strategic frameworks like SWOT and TOWS, the study advocates for a holistic approach that transcends mere technological adoption, respectively, a politically engaged and ethically grounded perspective on digital transformation. It argues that strategic planning must actively involve stakeholders in defining a sustainable, inclusive and ethically responsible digital future.
