Is the Trend your Friend? An Analysis of Technology 4.0 Investment Decisions in Agricultural SMEs

Smart Agriculture and 4.0 Technologies have brought several benefits to agricultural small and medium enterprises (SMEs). Nonetheless, the penetration of such digital technologies is still poor and slow. This study addresses the issue and provides some insights on the reasons related to the still limited adoption of 4.0 technologies within agricultural SMEs. Authors do not simply focus on the adoption per se, but rather devote attention to the SMEs owners/managers' subjective perception of the opportunity behind the technology adoption, and of the incentives or constraints given by the external environment as well as the organizational capabilities as embedded in the owners/managers’ skills and organizational routines. Authors analyze data collected by surveying 96 Italian agricultural SMEs owners/managers, and empirically confirm the relevance of managerial capabilities, managerial cognition, and managerial perception of the external environment for the adoption of 4.0 technologies in agricultural SMEs. The results of this research support the conclusion that organizational capabilities related to the search for evidence-based knowledge by the SME’s decision-maker are crucial for the technology’s adoption. In addition, we show the statistical significance relevance of the managerial perception of technological usefulness and of the availability of a supporting business environment either in the form of professional services or institutional support, on the technology’s adoption. The article ends by discussing the results and highlighting relevant managerial implications.