Dynamic Capabilities and Circular Economy Innovations for Achieving <scp>NetZero</scp> in Mining

Abstract

ABSTRACT Achieving net‐zero carbon emissions requires context‐sensitive and innovation‐driven strategies, particularly in environmentally intensive sectors such as mining. This study examines how dynamic capabilities, specifically sensing, seizing and reconfiguring, facilitate circular economy (CE) innovations that support firms' progress towards NetZero objectives. Drawing on survey data from mining firms in Ghana, the study employs partial least squares structural equation modelling (PLS‐SEM) and fuzzy‐set qualitative comparative analysis (fsQCA) to analyse both linear and configurational relationships. The results indicate that reconfiguring capabilities play a central role in perceived NetZero progress, particularly when combined with CE‐based process innovations. Environmental dynamism further strengthens the positive relationship between CE innovations and progress towards NetZero. By clarifying how organisational capabilities and CE innovation types interact under dynamic conditions, this study contributes to the literature on sustainability transitions and offers practical insights for mining firms and policymakers seeking to advance NetZero‐oriented strategies in resource‐intensive and volatile environments for sustainable development.