Entrepreneurial Innovation and Mechanization Adoption among Wheat Farmers in Pakistan
Abstract
Entrepreneurial innovation is increasingly recognized as a key driver of agribusiness performance and food system transformation in developing economies. This study examines how different dimensions of innovation influence perceived wheat product quality and mechanization adoption and explores their broader implications for agribusiness development and food-system policy. Focusing on wheat farmers in southern Khyber Pakhtunkhwa, Pakistan, within the China-Pakistan Economic Corridor (CPEC), the research provides empirical insights into the role of innovation in shaping agricultural productivity and competitiveness. A cross-sectional dataset of 381 farmers was analyzed using a mixed-method framework combining cluster analysis, Partial Least Squares Structural Equation Modelling (PLS-SEM), bootstrapping, and SHapley Additive exPlanations (SHAP)-based machine learning. The analysis evaluates the effects of technological, administrative, and product innovation, along with farmer characteristics, farming systems, and institutional support, on agribusiness performance. The results reveal significant heterogeneity among farmers, grouped into three clusters reflecting differences in resources, education, and production systems. Product innovation emerges as the strongest determinant of perceived wheat product quality (β = 0.946, p < 0.001). Technological (β = 0.306, p < 0.01) and administrative innovation (β = 0.347, p < 0.001) influence performance indirectly through product innovation. Farming systems (β = 0.504) and institutional support (β = 0.426) significantly drive mechanization adoption. The model demonstrates high explanatory power (R2 = 0.965). SHAP analysis further highlights farm size, farming systems, education, and experience as important contributors to the modeled outcomes. These findings underscore the role of entrepreneurial innovation in improving perceived product quality and supporting broader agribusiness development.
© 2026 Atif Zahoor, Lei Wang, published by Poznań University of Life Science
This work is licensed under the Creative Commons Attribution 4.0 License.