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Digital Transformation Drivers in Zhejiang’s New Farms

May 3, 2025
in Social Science
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In an era where digital transformation is reshaping industries worldwide, the agricultural sector is undergoing significant changes driven by the integration of advanced technologies. Recent research delves into the complexities fueling digital transformation among new agricultural operating entities (NAOEs) in Zhejiang Province, China, revealing that this evolution is not the result of single factors but rather a confluence of multiple dynamic forces. Utilizing the fuzzy-set Qualitative Comparative Analysis (fsQCA) method, the study dissects how government support, managerial digital capabilities, technological adoption, organizational structures, and environmental factors interact to facilitate or hinder the digital leap in agriculture.

The study challenges prevailing simplistic explanations of agricultural modernization by emphasizing the necessity of multidimensional interactions. Government support emerges as a fundamental external driver that enables nascent agricultural entities to surmount common barriers such as limited funding, technological inadequacies, and informational gaps. Without this backing, efforts at digital advancement risk stagnation due to resource constraints. Simultaneously, the digital capabilities of management are identified as a non-negotiable condition; it is through adept leadership that agricultural organizations can effectively harness technological innovations, optimize management tools, and adapt expeditiously to the fluctuating external landscape.

Crucially, the research identifies three distinct pathways leading to high-level digital transformation. The first pathway is technology-driven, where digital infrastructure and innovation stand at the forefront. The second pathway is technology-organization-driven, reflecting a strategic alignment between digital tools and organizational processes that ensures synergistic development. The final pathway is environment-driven, underscoring the influence of favorable market conditions, policy incentives, and socio-economic ecosystems that nurture digital adoption. Contrasting this, the study finds that insufficient technological penetration, misalignment between technology and organizational strategy, and overwhelming environmental challenges contribute to low-level digital transformation outcomes.

One of the pivotal insights from this research relates to the TOE (Technology-Organization-Environment) framework utilized to guide variable selection and analysis. While this framework provides a robust theoretical foundation, the authors acknowledge its limitations in fully capturing the dynamic and multifactorial nature of digital transformation in agriculture. The complexity observed suggests that future studies incorporating perspectives from behavioral economics and institutional economics could yield richer, more nuanced understandings of this phenomenon, particularly regarding the human and regulatory dimensions influencing technological assimilation.

Zhejiang Province serves as a relevant contextual backdrop for this inquiry due to its relatively advanced status in agricultural digitalization compared to other regions of China. However, this geographic concentration also presents a limitation regarding the generalizability of findings. Diverse regional socio-economic and natural conditions across China’s eastern, central, and western areas imply heterogeneity in the pathways and outcomes of digital transformation. The researchers advocate for expanded, comparative future studies that encompass a wider array of regions and NAOE types, facilitating the design of tailored support policies reflective of localized challenges and opportunities.

Policy recommendations stemming from this research emphasize the indispensable role of government in orchestrating the digital transition of agriculture. Enhancing technological support and bolstering digital infrastructure are positioned as foundational imperatives. The establishment of industry-university-research platforms is suggested as a mechanism to ensure that technological innovation aligns closely with practical agricultural needs. Accelerating the reduction of the urban-rural digital divide, particularly through robust information infrastructure development, is also highlighted as critical to equitable agricultural advancement.

In addition to infrastructure, the study underscores the need for improved policy ecosystems that promote the seamless integration of digital technologies within agricultural organizations. This encompasses initiatives that encourage the adoption of optimized organizational structures, facilitating a coherent fusion of technology and managerial processes. Government interventions through talent acquisition policies, management model innovation, tax incentives, and financing support are advocated to nurture vibrant agricultural entities capable of sustained digital growth.

A further cornerstone of the research is the cultivation of digital competencies among agricultural stakeholders. Recognizing digital literacy and skills as linchpins for transformative success, the study encourages initiatives that foster active farmer participation in training and practical applications of digital agriculture. Diverse educational channels, including cutting-edge digital platforms like TikTok live streams alongside traditional on-site sessions, are identified as effective means to spread knowledge and build capacity within rural communities.

Talent attraction policies also receive considerable attention, with emphasis placed on creating favorable living and working conditions in rural areas. Housing subsidies, tax relief, and other incentives are championed as strategies to draw digital-savvy individuals who can act as catalysts and role models, thereby reinforcing local capacities. This multi-layered approach acknowledges that digital transformation is as much a human capital challenge as it is a technological one.

From a theoretical standpoint, the study contributes to the unfolding academic discourse by empirically validating the complex, multi-path mechanisms driving digital transformation in NAOEs. By illustrating the symbiotic relationship between government support and the digital capabilities of agricultural organizations, the research highlights the multifaceted nature of digital evolution, moving beyond linear explanations toward integrative models that accommodate diverse interacting factors.

Practically, the findings provide actionable insights for policymakers, stakeholders, and agricultural practitioners eager to accelerate digital adoption. The recommended strategies not only focus on technological and infrastructural improvements but also advocate for comprehensive systems-level reforms. This holistic approach accounts for organizational realignment, human capital development, and environmental adaptability as essential components for successful transformation.

Nevertheless, the study acknowledges inherent limitations, including its reliance on data from a single province and the scope of variables analyzed. The dynamic character of digital transformation implies that certain influential factors, especially social and behavioral ones, may have been overlooked. This opens avenues for future research to adopt a broader analytical lens, integrating interdisciplinary insights to better map the contours of agricultural digitization.

Moreover, the concentration on Zhejiang Province, with its distinct economic and social profile, suggests that observed patterns may not be wholly representative of the broader Chinese agricultural landscape. Differences in policy priorities, resource endowments, and cultural attitudes across regions could significantly alter the efficacy and pathways of digital transformation. Comparative analyses involving diverse regions would thus provide richer, context-sensitive understandings and inform more effective regional and national digital strategies.

Importantly, the study underscores that digital transformation in agriculture cannot be precipitated by technological innovation alone. Instead, it must be accompanied by organizational restructuring, managerial capacity building, and supportive environmental conditions. The intricate interplay among these factors demands coordinated efforts across multiple levels – from government agencies to grassroots operators – to overcome entrenched challenges.

The research also portends broader global implications, as rural digitalization is a critical element for sustainable development and food security worldwide. Understanding the enablers and inhibitors of digital transformation in agrarian contexts informs international efforts to harness technology for rural revitalization, climate resilience, and inclusive growth. Lessons learned from the Zhejiang case offer valuable templates, though customization to local realities remains essential.

In light of the accelerating pace of technological advancement, the study calls for ongoing monitoring and adaptive policy frameworks that can respond to emerging challenges and opportunities. Digital transformation is portrayed as a fluid process, shaped by evolving technologies, market dynamics, and stakeholder capacities. Only through sustained, coordinated, and context-aware initiatives can agricultural systems fully unlock the promise of the digital revolution.

Ultimately, the convergence of government support, managerial digital aptitude, technological infrastructure, organizational innovation, and conducive environmental factors forms the cornerstone upon which future agricultural digital transformation will be built. This comprehensive perspective moves beyond simplistic narratives, highlighting the need for multifaceted strategies to realize the full potential of digital agriculture, fostering more productive, sustainable, and resilient rural economies.


Article References:
Zheng, Y., Liao, F. & Tian, M. Examining the factors influencing the digital transformation of new agricultural operating entities: insights from Zhejiang, China. Humanit Soc Sci Commun 12, 608 (2025). https://doi.org/10.1057/s41599-025-04949-y

Tags: advanced technologies in farmingagricultural modernization challengesdigital leap in agricultureDigital transformation in agricultureenvironmental factors affecting agriculturefuzzy-set Qualitative Comparative Analysisgovernment support for digital agriculturemanagerial digital capabilities in farmingmultidimensional interactions in farmingnew agricultural operating entitiesorganizational structures in agriculturetechnological adoption in agriculture
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