Firms face complex temporal challenges in achieving decarbonization progress, requiring them to align short-term emission reductions with long-term net-zero strategies. While prior research has explored environmental reporting and emission reduction targets, little is known about how firms manage and resolve the inherent tensions in implementing decarbonization strategies. This study adopts a configurational perspective and employs Qualitative Comparative Analysis (QCA) to investigate the temporal interplay between governance mechanisms and (collaborative) innovation efforts in corporate decarbonization journeys. Our findings contribute to the literature on climate change management and innovation in two key ways. First, we demonstrate how firms at different stages of their decarbonization pathways utilize distinct combinations of governance and innovation strategies, each addressing temporal tensions in unique ways. Second, we highlight the pivotal role of collaborative innovation in complementing internal efforts, enabling firms to simultaneously advance short-term and long-term decarbonization objectives. By integrating governance and innovation perspectives, this study provides novel insights into the temporal dimensions of corporate decarbonization and offers actionable strategies for firms pursuing ambitious emission reduction targets.
