Adoption of Advanced Technologies in Palm Oil Milling Firms in Malaysia: The Role of Technology Attributes, and Environmental and Organizational Factors

Abstract

Malaysian palm oil mills have lagged behind in the adoption of advanced milling technologies, both to support productivity growth as well as meet sustainable development goals. Using primary data from a simple random sample of 54 mills, this study sought to examine the factors explaining the adoption of advanced milling technologies. The results from the logit regressions deployed show that top management support and mill size act as key drivers of new technology adoption. Importantly, organizational factors were more critical in the adoption of advanced milling technologies than technological and environmental factors. However, financial support and resources, technical skills, complexity, cost, and government support produced negative coefficients among the non-adopters. The results should help mill owners, managers, and policymakers to remove the barriers facing the non-adopters, and to create effective strategies to stimulate the adoption of advanced milling technologies.