How Can Heavy Polluters Achieve Green Innovation? A Configurational Perspective From the Strategic Triad

ABSTRACT Despite growing scholarly attention to corporate green innovation, prior research has largely overlooked the configurational mechanisms underlying high green innovation performance (GIP) in environmentally sensitive sectors, especially under heterogeneous institutional contexts. Grounded in the strategy tripod framework, this study uses fuzzy‐set Qualitative Comparative Analysis (fsQCA) to examine how dynamic capabilities, institutional conditions, and industrial conditions jointly shape GIP among Chinese A‐share listed heavy‐polluting firms. We derive three core findings: no individual factor acts as a necessary condition for high GIP, yet strengthened environmental sensing capability and industry dynamism are consistently positively associated with superior green innovation outcomes. We identify four equifinal configurations that drive high GIP via synergistic alignment among organizational agility, regulatory pressures, and market competitive dynamics. Further analysis shows that non‐high GIP mainly arises from institutional voids, excessive industrial complexity and a lack of industry dynamism. These findings advance contingency theory in the sustainable innovation literature by identifying context‐specific implementation archetypes and providing evidence‐based strategic guidance for heavy‐polluting firms to pursue ecological modernization.