The study analyzes the business model sustainability and its value creation potential. The process of adopting sustainability in business model is theorized on dynamic capabilities perspective. While analyzing longitudinal data, it is found that business model sustainability creates value for the firm but the impact begin to diminish after certain level. Furthermore, the R&D capabilities of the firm enhance the value creation from the business model sustainability. While the sustainable practices regarding the employee relations reduces this effect mainly due to costs associated with loss in employee interests during the process of adopting sustainability in the business model. The study contributes to the literature in sustainable business models and corporate sustainability.