Factors that Influence the Adoption of Agricultural Revolution 4.0 (AR4.0) among Malaysian Agro-Based Industries

• Published in: Universal Journal of Agricultural Research
• Main Author: Aris N.F.M.; Fatah F.A.; Saili A.R.; Zailani S.H.M.; Hazim A.
• Format: Article
• Language: English
• Published: Horizon Research Publishing 2023
• Online Access: https://www.scopus.com/inward/record.uri?eid=2-s2.0-85184243098&doi=10.13189%2fujar.2023.110602&partnerID=40&md5=68f234910d00e4d5bebe9b942546d957

The agricultural sector plays a pivotal role in poverty reduction and the stimulation of economic growth. Nevertheless, small-scale farmers in developing nations often encounter numerous obstacles that impede their ability to adopt sustainable agricultural technologies. These challenges include, but are not limited to, information asymmetry throughout the supply chain, elevated transaction costs, inadequate agricultural services, and limited access to credit. Therefore, the development and growth of digital agriculture or Agricultural Revolution (AR4.0) can transform agricultural practices across the world to ensure food security, boost productivity and turn the agriculture sector into a more dynamic, sustainable and competitive industry. This study focuses on Malaysia as a case study with the primary aim of examining the factors that influence the adoption of Agriculture 4.0 (AR4.0) technology in agribusiness, specifically concerning its sustainability. A quantitative approach was used to analyse the adoption of AR4.0 technologies in the “core” productive processes. Using approximately 378 agro-based Small-Medium-Industries or SMIs as a sample, results revealed that most SMIs were early adopters of AR4.0. The findings also showed that antecedents such as strategy, technology readiness, food security and food safety had positive relationships with the adoption of AR4.0 technology. This adoption and its implications may draw attention of policymakers, industrial players and government to deal with the challenges in adopting AR4.0, thus being able to support agricultural actors in adopting AR4.0 technologies. © The Author(s), 2023.