Embracing paradox and moving away from unsustainability through business model innovation

Introduction Sustainable value is an evolving concept that transcends traditional notions of financial gains. It encompasses multiple dimensions and requires a perspective that considers the long-term impact of business activities on society and the planet. The paradoxes of sustainability have recently emerged as an integrative approach to shaping the way businesses address sustainability issues. Recognizing and embracing paradoxes within sustainability is essential for fostering innovation across the triple bottom line.Objective This paper clarifies "sustainable value" through the paradox theory lens, showing how it can be created, captured, and delivered by embracing sustainability paradoxes. It challenges traditional business approaches and proposes a paradigm shift toward business model innovation addressing grand sustainability challenges.Methods A constructive research approach is employed, involving an empirical investigation of the triple layered business model canvas. Primarily employing a stakeholder-oriented workshop, the study examines the potential for sustainable business model innovation in operational contexts, focusing on integrating sustainability-focused stakeholder views and objectives.Findings Findings show that embracing sustainability paradoxes enable businesses to develop more holistic solutions that drive innovation along the triple bottom line. It also demonstrates that a proactive approach to business model innovation, incorporating sustainability objectives, can shift business paradigms away from shareholder primacy toward a flourishing-oriented perspective.Conclusion This research contributes to the discourse on sustainable business model innovation by presenting evidence of how businesses can transition from a shareholder-centric model to one that enables flourishing as the ultimate objective of sustainability. The findings underscore the importance of integrating sustainability into business models to address grand challenges effectively.