Abstract
Sustainable Business Model (SBM) research has generated extensive typologies and ar-chetypes, yet firms continue to struggle with translating sustainability ambitions into op-erational change. This paper addresses the persistent design–implementation gap in Sus-tainable Business Model Innovation by reconceptualizing the Business Model Canvas as a governance-enabled design architecture. Drawing on a structured systematic literature review of recent research, the study identifies a lack of mechanism-based guidance ex-plaining how value creation, delivery, and capture processes are reconfigured during sus-tainability transitions.
In response, the paper proposes an Enhanced Business Model Canvas integrating two in-terdependent layers: a Sustainability Layer and a Resource Utilisation Layer. The Sustain-ability Layer embeds multi-stakeholder accountability, ESG integration, lifecycle assess-ment, and formal verification mechanisms into business model design. The Resource Uti-lisation Layer operationalizes circular and regenerative principles through asset rede-ployment, lifecycle extension, and cross-sectoral collaboration. Together, these layers transform the canvas from a static visualization tool into a dynamic governance structure capable of institutionalizing accountability and operational circularity.
The framework contributes theoretically by advancing mechanism-based theorizing in SBM research and bridging systemic sustainability innovation with firm-level strategy. Practically, it provides managers with a structured roadmap for embedding sustainability within core organizational processes while managing tensions between economic viabil-ity and environmental and social objectives. By integrating normative direction with op-erational execution, the Enhanced Canvas offers a governance architecture for bridging the usability–implementation gap in sustainable business transformation.