The advances in digital technologies enable organisations to develop new digital products and services, new business processes, and novel business models. Innovative digital solutions and business concepts are changing the environment of traditional production management systems. This paper aims to explore value constellations where small automation solution providers contribute to improving their customers’ production systems. An empirical study is conducted to outline the digital transformation value constellation and possible created values for both automation technology solution providers and manufacturing industries. The paper presents different approaches to how automation solution providers contribute to innovative customised digital transformation in manufacturing firms.

Automation technology solution providers (ATSPs) offer tailor-made production solutions to their customers. In today’s competitive manufacturing industry market, affected by rapid technological transformation, ATSPs need advanced technology skills and high innovation capabilities to develop the right solution for specific customer challenges. This paper is based on an empirical study of 19 small and medium-sized ATSP companies in an industrial cluster. It discusses the role of inter-organisational collaboration for small ATSPs to enhance innovation and mitigate the resource challenges that they face due to their limited size. A conceptual model for collaboration strategies is proposed to support ATSP developing production innovation.

The rapid ongoing digital transformation creates new opportunities to generate value but also challenges companies in the manufacturing industry to adapt to the recent changes. Moreover, committing to sustainability is essential to maintain competitive advantages, build a more resilient company, and manage increasing societal demands and regulations. Referred to as a “twin transition”, the digital transformation can positively impact firms’ commitments to environmental sustainability. This paper explores challenges that small technology solution providers face on their path toward developing sustainable production solutions for their manufacturing customers. An empirical study was conducted in an industrial cluster of small and medium-sized companies (SMEs) providing innovative, tailor-made production technology solutions to manufacturing companies. As a result, a collaborative process model was suggested for such SMEs to overcome internal and external barriers to obtaining sustainability, thus better supporting the manufacturing companies, i.e., their customers, to strive towards more sustainable production.

Circular value chains, driven by sustainability goals and resource efficiency, are now central in industrial strategies. Simultaneously, digital technologies transform business models and accelerate the shift towards circular economies. This paper explores circular material flow for the electrification of the vehicle fleet, focusing on the Lithium-ion battery value chain. In the paper, a conceptual model integrating digitalization is developed and evaluated to enhance efficiency and product innovation. The paper reviews the lithium-ion battery value chain literature and investigates digitalization potentials for circular business models. A conceptual model is presented in this study to represent the intricate relationship between each stage of the value chain and the concept of circularity while considering the carbon footprint and complexities associated with the implementation of digitalization.

In the context of increasing global competition and rising environmental and social demands, manufacturing companies are under pressure to pursue sustainable growth while maintaining competitiveness. Although the convergence of digitalization and sustainability, known as the “twin transition”, has gained significant attention, understanding how digital technologies concretely support sustainability initiatives remains fragmented. This study explores the role of digital transformation in advancing sustainable practices within the manufacturing sector, drawing on empirical evidence from an industrial cluster. The findings reveal that while digital tools offer significant potential for improving resource efficiency, reducing emissions, and supporting sustainable operations, companies face persistent barriers such as stakeholder resistance, high initial costs, limited customer willingness to pay for sustainable products, and fragmented data utilization. Furthermore, organizational challenges, including low digital maturity, cultural resistance, and difficulties in aligning supply chain partners, continue to hinder progress. The study highlights the importance of employee engagement, transparent sustainability reporting, and strategic data management as critical enablers for the successful integration of digitalization and sustainability. By identifying both opportunities and challenges, the paper contributes to a deeper understanding of the systemic changes needed to leverage digital technologies for sustainable manufacturing and outlines avenues for future research across broader industrial contexts.