From Financial and Human Capital to Technology Adoption Readiness: Resource Conversion Among Smallholder Farmers in Henan, China

Abstract

In smallholder agriculture, access to finance, training and external services does not, by itself, explain how farm households convert available support into workable production decisions. This study examines how financial and human capital are linked to innovation capability, technology adoption readiness and farmer-reported performance in smallholder farming in Henan Province, China. Grounded in the resource-based view and a context-sensitive reading of dynamic capability, the study treats capital resources as enabling conditions whose value depends on their conversion into adaptive judgement and technology-specific readiness. Cross-sectional survey data from 565 farm households were analysed using partial least squares structural equation modelling. Financial and human capital were positively associated with innovation capability and technology adoption readiness, but their direct associations with farmer-reported performance were not statistically supported. Innovation capability was linked to technology adoption readiness, whereas its direct association with farmer-reported performance was not supported. Technology adoption readiness showed the strongest association with farmer-reported performance and formed the main statistically supported indirect pathway linking capital resources to performance. The findings suggest that, under smallholder farming constraints, resource conversion depends less on resource access alone than on household-level adjustment, service conditions and readiness to use feasible technologies.