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Big Data Meets Jugaad: Cultural Innovation Strategies for Sustainable Performance in Resource-Constrained Developing Economies

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  • Xuemei Liu

    (School of Management and Economics, North China University of Water Resources and Electric Power, Zhengzhou 450046, China)

  • Assad Latif

    (School of Management and Economics, North China University of Water Resources and Electric Power, Zhengzhou 450046, China)

  • Mohammed Maray

    (Central Lab, King Khalid University al Qura’a, Abha P.O. Box 960, Saudi Arabia
    Department of Informatics and Computer System, College of Computer Science, King Khalid University, Abha 61421, Saudi Arabia
    Central Lab, King Khalid University al Qura’s is the first affiliation.)

  • Ansar Munir Shah

    (Department of Cs/It, University of Southern Punjab Multan, Multan 32100, Pakistan)

  • Muhammad Ramzan

    (Department of Cs/It Emerging Technology, Emerson University Multan, Multan 60000, Pakistan)

Abstract

This study investigates the role of Big Data Analytics Capabilities (BDACs) in ambidexterity explorative innovation (EXPLRI) and exploitative (EXPLOI) innovation for achieving a sustainable performance (SP) in the manufacturing sector of a resource-constrained developing economy. While a BDAC has been widely linked to innovation in developed economies, its effectiveness in developing contexts shaped by indigenous innovation practices like Jugaad remains underexplored. Anchored in the Resource-Based View (RBV) and Dynamic Capabilities (DC) theory, we propose a model where the BDAC enhances both EXPLRI and EXPLOI, which subsequently leads to an improved sustainable performance. We further examine the Jugaad capability as a cultural moderator. Using survey data from 418 manufacturing firms and analyzed via Partial Least Squares Structural Equation Modeling (PLS-SEM), results confirm that BDA capabilities significantly boost both types of innovations, which positively impact sustainable performance dimensions. Notably, Jugaad positively moderates the relationship between EXPLOI and financial, innovation, and operational performance but negatively moderates the link between EXPLRI and innovation performance. These findings highlight the nuanced influence of culturally embedded innovation practices in BDAC-driven ecosystems. This study contributes by extending the RBV–DC framework to include cultural innovation capabilities and empirically validating the contingent role of Jugaad in enhancing or constraining innovation outcomes. This study also validated the Jugaad capability measurement instrument for the first time in the context of Pakistan. For practitioners, aligning data analytics strategies with local innovative cultures is vital for sustainable growth in emerging markets.

Suggested Citation

  • Xuemei Liu & Assad Latif & Mohammed Maray & Ansar Munir Shah & Muhammad Ramzan, 2025. "Big Data Meets Jugaad: Cultural Innovation Strategies for Sustainable Performance in Resource-Constrained Developing Economies," Sustainability, MDPI, vol. 17(15), pages 1-43, August.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:15:p:7087-:d:1717840
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