From Internal Readiness to Technology Adoption: Innovation Capability and Knowledge Sharing among Smallholder Farmers

Abstract

The availability of agricultural technologies does not necessarily lead smallholder farmers to adopt them. Before using a new practice, farmers need to judge whether the information is reliable, whether the practice fits their land and labor conditions, and whether the expected benefits are sufficient to justify the costs and risks of trial and adjustment. Drawing on an internal readiness perspective, this study examines how human capital and psychological capital are associated with technology adoption through innovation capability, and whether knowledge sharing changes the relationship between innovation capability and technology adoption. Survey data from 408 smallholder households in Henan Province, China, were analyzed using partial least squares structural equation modeling. The results show that human capital is positively associated with both innovation capability and technology adoption. Psychological capital is positively associated with innovation capability, but its direct relationship with technology adoption is not significant. Innovation capability mediates the relationships between human capital, psychological capital, and technology adoption. Knowledge sharing has a weak positive lower-order association with technology adoption, while its interaction with innovation capability is negative and significant. This negative interaction should not be interpreted as evidence that knowledge sharing is harmful. Rather, when information is abundant and heterogeneous, farmers with stronger innovation capability may need to compare sources, screen inconsistent advice, and verify local applicability before taking action. The findings suggest that smallholder technology adoption depends on internal resources, capability enactment, and the conditions under which shared knowledge is interpreted. Agricultural extension should therefore combine technology dissemination with support for farmers’ diagnostic, adaptive, and information-verification skills.