While prior research has examined the determinants and outcomes of sustainability-driven innovation, the strategic interplay between leveraging internal capabilities and forming external collaborations remains underexplored, particularly in resource-intensive industries where dynamic capabilities play a pivotal role in balancing proprietary innovation with systemic partnerships. This study investigates how firms navigate the strategic dilemma of pursuing sustainability-driven innovation internally versus through external collaborations. Drawing on a longitudinal case study of ALPHA, a global mining leader, the research explores how internal capabilities and partnerships drive innovation in areas like low-carbon technologies, renewable energy, and circular economy practices. Findings highlight the trade-offs between control and resource sharing, emphasizing the role of dynamic capabilities in balancing proprietary innovation with systemic collaboration. This study contributes to the literature on sustainability-driven innovation by providing insights into the strategic responses to sustainability imperatives and offering practical implication for firms managing similar challenges.
