Emerging technologies boost profitability and resilience in global agri-SMEs

Digital technologies, while varying in complexity and scalability, serve as strategic levers that allow Agri-SMEs to move from informal operations toward more resilient and digitally integrated business models, the study asserts.

A newly published study has identified how digital innovation is driving fundamental transformations in the business models of agricultural small and medium-sized enterprises (Agri-SMEs) worldwide. Published in Systems, the research outlines how Agri-SMEs are responding to the challenges of food system sustainability, climate volatility, and market fragmentation through digital integration.

The paper, titled "Digital Innovation, Business Models Transformations, and Agricultural SMEs: A PRISMA-Based Review of Challenges and Prospects", presents a systematic review of 95 peer-reviewed studies spanning 2013 to 2025. Through a multi-theoretical framework, the study examines how technologies such as artificial intelligence, mobile platforms, blockchain, cloud services, and IoT are reconfiguring value creation, delivery, and capture among Agri-SMEs across diverse global regions.

How are agri-SMEs using digital tools to innovate?

The review identifies five dominant clusters of digital innovation driving change in Agri-SMEs: mobile platforms, AI-integrated services, IoT applications, blockchain-based traceability systems, and cloud data infrastructures. Mobile platforms emerged as the most prevalent tool, especially in South Asia and Sub-Saharan Africa, due to the wide availability of smartphones and mobile money services. These tools have enabled Agri-SMEs to digitize output procurement, manage inventories, and connect directly with farmers even in remote areas.

Mobile apps such as AgriWallet in Kenya and Kisaan Network in India are enabling bundled services like loans, insurance, and agronomic advisory through multi-language interfaces and SMS alerts. AI-enabled services, while less prevalent, are gaining traction in countries like India, Vietnam, and Nigeria, where platforms such as CropIn and Fasal offer real-time pest detection and personalized crop management tools. However, the adoption of AI remains geographically uneven, hindered by skill deficits and lack of localized models.

IoT applications were found to be especially useful in managing logistics-intensive or perishable agricultural supply chains. SMEs in Ghana, Nigeria, and Vietnam use IoT devices to monitor environmental conditions, reduce wastage, and optimize storage or equipment usage. Blockchain, though limited in adoption, plays a pivotal role in export-oriented sectors. Firms in Colombia, Ghana, and Peru use blockchain to verify sourcing practices, comply with international standards, and access premium markets. Lastly, cloud-based infrastructures support digital coordination across supply chains, enabling Agri-SMEs to use real-time dashboards for demand forecasting, route optimization, and partner integration.

Digital technologies, while varying in complexity and scalability, serve as strategic levers that allow Agri-SMEs to move from informal operations toward more resilient and digitally integrated business models, the study asserts.

What business model changes are enabled by digital innovation?

Using the Business Model Canvas as a core framework, the study outlines how Agri-SMEs are shifting their operations across three critical value domains: creation, delivery, and capture.

In value creation, digital tools have enabled Agri-SMEs to transition from selling products to providing integrated service bundles. Platforms like DeHaat and Apollo Agriculture in India now offer end-to-end services that combine input provision, credit scoring, weather-based scheduling, and personalized advisory. In Ghana and Peru, blockchain tools allow SMEs to market their products based on traceability and ethical sourcing, giving rise to new forms of customer value centered on transparency and compliance.

On the delivery front, mobile applications and cloud systems have redefined how services reach farmers and markets. Apps such as Tulaa and iProcure have replaced traditional agro-dealers by facilitating mobile transactions and scheduling deliveries directly to end-users. In Southeast Asia, aquaculture-focused SMEs use IoT systems to automate pond management, effectively shifting service delivery into digitally controlled environments. Cloud dashboards enhance these capabilities by enabling real-time inventory tracking and route planning for large-scale distribution, as seen with Twiga Foods and Ninjacart.

Value capture models have also undergone major changes. Instead of relying solely on sales margins, many Agri-SMEs now monetize services through subscriptions, transaction fees, and data sales. For example, Indian platform Fasal offers tiered pricing, where basic services are free while advanced AI-driven tools incur fees. In Latin America and Europe, blockchain-enabled traceability allows exporters to claim higher prices, with customers reportedly paying up to 30% more for verified, ethically sourced goods. SMEs are also emerging as data brokers, selling anonymized farm data to insurers, agrochemical companies, and financial institutions.

These changes signal a move away from volume-centric business models toward multi-stream, performance-based revenue strategies that prioritize customer segmentation, service personalization, and data valorization.

What regional patterns and strategic barriers shape agri-SME transformation?

The study identifies five regional archetypes that highlight the varied adoption paths of digital transformation across different socio-economic contexts.

In Sub-Saharan Africa, mobile-led innovations dominate due to limited broadband infrastructure. Agri-SMEs here function as mobile-based transaction agents, often dependent on donor support and community-based networks. In contrast, South Asia demonstrates higher digital maturity, fueled by public infrastructure like India’s UPI and AgriStack platforms. Companies like CropIn integrate AI, cloud, and fintech solutions to provide comprehensive service ecosystems.

Southeast Asian countries such as Vietnam, Indonesia, and the Philippines feature institutionalized digital ecosystems. Here, government agencies and cooperatives play a central role in co-developing platforms, particularly for IoT-based horticulture and aquaculture management. In Latin America, blockchain is used primarily for compliance and certification purposes in export chains. Rather than transforming internal operations, SMEs in Colombia and Peru use traceability technologies to meet EU import standards. In Europe, digital innovation focuses on regulatory compliance, environmental monitoring, and advanced analytics. SMEs in countries like the Netherlands and Spain use AI and digital twins to optimize resource efficiency, positioning themselves as data orchestrators within complex value networks.

Notably, the study highlights persistent barriers to scale. These include: interoperability failures, weak regulatory frameworks, digital illiteracy, and fragmented innovation ecosystems. These constraints confine many digital solutions to pilot stages, preventing widespread institutional adoption. Moreover, power asymmetries within platform-based ecosystems raise concerns over data ownership, pricing transparency, and SME autonomy.

The study calls for policy frameworks that support inclusive digital transformation by investing in digital literacy, public infrastructure, regulatory harmonization, and ecosystem coordination. It also urges further research into underrepresented regions such as Francophone Africa and the Pacific Islands, and into overlooked dimensions like gender equity and data justice in digital agriculture.