Employee Engagement as Digital Twin Innovation Driver: Conceptual Framework

Abstract

Organisations across sectors face intensifying pressure to innovate as digital transformation reshapes operations, structures and decision-making. Digital twin technologies have become critical strategic tools, enabling simulation, real-time monitoring and process optimisation. Yet most implementations remain techno-centric, prioritising system architectures over the human dimensions essential for transformative impact. This study develops an integrated conceptual framework placing employee engagement and knowledge processes at the core of digital twin-enabled innovation, bridging three previously disconnected research streams. Using a integrative review of peer reviewed literature on employee engagement and innovation, digital transformation/ change management and digital twin adoption (2020–2026), comparative thematic analysis mapped conceptual convergences and revealed key theoretical gaps, particularly how human factors translate digital twin capabilities into organisational innovation. The resulting framework posits employee engagement as the primary mediating mechanism through which digital twin-driven change produces multilevel innovation outcomes. Knowledge sharing acts as a secondary mediator, converting individual experimentation into collective organisational learning, while leadership support, learning culture and change readiness serve as contextual moderators. Digital twin initiatives demand real-time data interpretation and cross-functional collaboration, challenges engaged employees meet through vigour, dedication and proactive problem-solving. The model defines a sequential pathway in which digital twin-enabled change enhances engagement, which stimulates knowledge sharing and generates individual innovative behaviours, team problem-solving and organisational process and service innovation, sustained by dynamic feedback loops from successful outcomes. This framework makes three original contributions: (1) integration of organisational behaviour, innovation management and information systems through mechanisms linking engagement, knowledge sharing and innovation; (2) new micro-foundational insights connecting human behavioural dynamics with Industry 5.0 digital twin technologies; and (3) actionable guidance for managers to design digital twin programmes as integrated socio-technical change initiatives fostering engagement and institutionalised knowledge sharing. The study outlines priorities for multilevel, longitudinal and cross-sector empirical research to test these propositions and advance human-centric digital twin innovation.