The application and benefits of digital technologies for agri-food value chain: Evidence from an emerging country

Abstract

Purpose: Many academic and technical studies have explored information and communications technology (ICT) applications in the agri-food sector from the farmers’ perspective. However, the technology supplier perspective on the ICT application has been largely overlooked. This paper aims to analyze how digital technologies are used within the agri-food value chain and their benefits and advantages from the technology supplier perspective. Originality/value: First, the study analyzed the benefits of ICT for the agri-food sector from the technology supplier perspective. Second, it comprised the integrated analysis of the complete set of ICT applied to the entire agri-food value chain. Third, we guaranteed the study’s replicability by using a straightforward methodological approach. Design/methodology/approach: Exploratory study with a descriptive approach was employed to map the complete set of digital technologies commercialized by 131 agri-food technology companies. The Organisation for Economic Co-operation and Development’s (OECD) (2018) typology for ICT solutions was used to identify technology types. The NVIVO software cluster analysis was applied to the data related to the benefits and advantages of the firms’ ICT solutions. Findings: We identified that cost reduction and rapid decision-making are the essential benefits of ICT. It was found that the ICT field in the agri-food sector is composed of different companies’ generations, and many are not startups. We identified two new phenomena: agricultural servitization, which comprehends the increasing importance of services as crucial input for agricultural production, and agricultural manufacturing, which refers to increasing control over production factors in agriculture.