Analysis of Readiness Factors Influencing IoT Adoption in the Broiler Industry: Economic Implications in Malang Raya

¹ Department of Animal Science, University of Muhammadiyah Malang, Malang 65144, East Java, Indonesia
² Agribusiness Department of Lumajang University, Lumajang 67381, East Java, Indonesia
³ Department of Agricultural Economics and Extension, Federal University Wukari, Wukari-Nigeria Taraba State, Nigeria
⁴ Department of Agrotechnologi, University of Muhammadiyah Palembang, Palembang 30116, South Sumatera, Indonesia

^* Corresponding author: This email address is being protected from spambots. You need JavaScript enabled to view it.

Abstract

This study aims to investigate the readiness factors influencing the adoption of Internet of Things (IoT) technology in the broiler industry in Malang Raya, East Java, with a focus on economic implications for local poultry farmers. A total of 100 broiler farmers were selected using purposive sampling, based on criteria of having operated their business for at least one year and willingness to complete the questionnaire. Survey data were tabulated and verified using Microsoft Excel, while demographic data were visualized. To examine relationships between variables—knowledge of IoT (X1), access and resources (X2), attitude toward technology (X3), and economic barriers (X4)—Structural Equation Modeling-Partial Least Squares (SEM-PLS) was applied using SmartPLS software. The findings revealed that knowledge (X1) and attitude (X3) significantly influenced IoT adoption readiness, with knowledge being the most dominant factor. The model explained 72.7% of the variance in IoT adoption decisions (R² = 0.727). The findings revealed that knowledge and perception of IoT (X1) had the strongest and statistically significant influence (path coefficient = 0.400; t = 2.095; p = 0.036), while access and resources (X2), readiness and attitude toward technology (X3), and economic constraints (X4) did not show significant effects (p > 0.05). Strengthening farmers' understanding of IoT and building positive attitudes toward technology are essential strategies. Collaborative support from government, academia, and technology developers is recommended to achieve inclusive and sustainable IoT integration, thereby enhancing the economic competitiveness of smallholder poultry farming.