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The object of this study is to investigate the determinants of adoption of Enterprise Resource Planning (ERP) technology in agricultural farms located in the Central-West region of Brazil. The data was collected from 200 in-depth interviews with soy, corn and cotton farmers from the State of Mato Grosso, Brazil. Structural Equations methodology was used to analyze the data and hypothesis. The conceptual model was proposed by combining Diffusion of Innovations and Technology-Organization-Environment theories. The results provide information to agribusiness owners, managers and administrators to promote and incentivize the use of ERP. Politicians and farmers can evaluate each scenario and support their political and administrative decisions through the evaluation of socioeconomic and environmental performances of agricultural exploration as a result of technological innovation. This leads to a need for an analytical tool for the farmers, with the objective of supporting the adoption of optimized ERP for agri-food activities.

The study investigates the perceptions of the effects and impacts on the performance of agricultural and livestock farms based on the view of obtaining dynamic capabilities by the adoption of enterprise resource planning (ERP) technology. The dimensions for measuring farmers’ perceptions of ERP adoption were technological, organizational and environmental and their diffusion and the impacts measured on dynamic capabilities were on internal operations, costs, sales and natural resources. A total of 502 farmers directly involved in managing the production, located in the main agricultural areas of Brazil were interviewed. The results indicated that the perception of obtaining dynamic capabilities in the farms by adopting the ERP was significant, but with lower levels in costs and natural resources. The influence of farm size on ERP adoption and its perception on farm performance was not significant. The proposed model proved to be adequate and can be validated and compared with other producing regions.

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