The Mac LC should be your inspiration because this is exactly what Apple did with it: The LC has a 16-bit bus and it's running a '020.
On the PC side of the fence Intel released the 386SX which was the low cost version of the 386DX. The 386DX had a full 32-bit external bus and the 386SX had a 16-bit external bus and fewer pins. The actual core of the two chips were effectively the same. (In the 1980s and early 1990s it was a lot more expensive to make a 32-bit system because your bus had to have many more traces.) I know that for Intel, they solved the problem by using 2 clock cycles to load a complete instruction. That is, every other clock cycle would either be the "high 16" or the "low 16."
Since the '020 doesn't have a shorter bus variant I do wonder how Apple made it work. At least we know it is possible to do.