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

Xuemei Liu, Assad Latif (), Mohammed Maray, Ansar Munir Shah () and Muhammad Ramzan
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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
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

Sustainability, 2025, vol. 17, issue 15, 1-43

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.

Keywords: big data analytics; explorative innovation; exploitative innovation; jugaad capability (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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