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Digital Technologies and Coordination Challenges in Agribusiness Supply Chains

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  • Cui, Xiurui
  • Malone, Trey

Abstract

Industry 4.0 technologies, such as artificial intelligence (AI), the Internet of Things (IoT), and blockchain, promise substantial efficiency and resilience gains for agribusiness supply chains, but their network-dependent value hinges on coordinated adoption. Using primary survey data from 281 agribusiness professionals and a complementarity-based Monte Carlo simulation of a 15-node, five-stage supply chain, we examine how adoption heterogeneity and supply chain position shape system-level technology value. Adoption rates vary sharply by technology (AI: 39.1%; IoT: 29.7%; Blockchain: 6.3%) and by market scope, with multinational firms adopting at nearly twice the rate of local firms. A dynamic model with neighbor-dependent transition probabilities reveals that coordination gains peak at 22–31% during the critical diffusion window (period 5) before narrowing as independent diffusion eventually converges. Technology diffusion in the agri-food supply chain follows a sequential, midstream-led pattern. Processors face the strongest incentive to adopt technologies that enhance traceability and logistics coordination, and lead in adoption. Adoption then spreads downstream before propagating upstream through network interactions, where the production stage exhibits the greatest lag. This asymmetric diffusion pattern highlights how coordination mechanisms, working through the unique structure of the agri-food supply chain, shape the pace and distribution of transformation gains.

Suggested Citation

  • Cui, Xiurui & Malone, Trey, 2026. "Digital Technologies and Coordination Challenges in Agribusiness Supply Chains," 2026 Annual Meeting, July 26 - 28, 2026, Kansas City, Missouri 404713, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea26:404713
    DOI: 10.22004/ag.econ.404713
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    References listed on IDEAS

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    1. Cui, Iris & Malone, Trey, 2026. "Why most agribusiness AI strategies never get past pilots," Purdue Agribusiness Review, Purdue University, vol. 0(Issue 1), March.
    2. MacDonald, James M. & Dong, Xiao & Fuglie, Keith O., 2023. "Concentration and Competition in U.S. Agribusiness," Economic Information Bulletin 337566, United States Department of Agriculture, Economic Research Service.
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