Research

Analysing the Adoption of Intelligent FIIB Business Review

11(4) 438–454, 2022
2021 Fortune Institute of
Agent Technology in Food Supply International Business
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DOI: 10.1177/23197145211059243

Evidence
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Subhodeep Mukherjee1 and Venkataiah Chittipaka1

Abstract
This article aims to identify and analyse the factors that impact the adoption of intelligent agent technology (IAT) in the food supply
chain (FSC). The research was conducted based on 329 respondents from various hotels and the theoretical framework adopted in this
study, that is, technological, organizational and environmental (TOE) framework. The findings indicated that multiple factors in TOE
contribute significantly to the adoption of IAT. We have validated the proposed framework by structural equation modelling utilizing
AMOS 22.0. This research offers a new and vital paradigm for adopting this innovation in the FSC, thereby increasing the overall
efficiency of a hotel. The proposed TOE framework has identified several factors like relative advantage, reliability, complexity, cost,
innovation adoption, top management support, skilled employees, IT awareness, environmental uncertainty, competitive pressure,
information intensity and supplier’s pressure, which helps in the adoption process of IAT in the FSC. It also provides a foundation for
future research and significant insights to adopt this new technology in the hotel industry.

Keywords
Technological-organizational-environmental, intelligent agent technology, structural equation modelling, food supply chain

Introduction all these observations, they boost revenues and clients’

experiences. For instance, many hotels worldwide use AI
Implementation of information technology (IT) in the food applications in various areas of their operations (Alsetoohy
supply chain (FSC) will help the industry reduce its & Ayoun, 2018).
operational price and add an advantage. The current According to Noodle.ai CEO Stephen Pratt, ‘there is a
technologies used in the FSC, like radio frequency need to find out the gaps that exist in the hotel’s operational
identification (RFID), electronic resource planning (ERP) efficiencies, such as inventory management’. Many hotels
and electronic data interchange (EDI), has many drawbacks; use IAT to automate, integrate, coordinate and make
as a result, managers main focus is to adopt the latest virtualization and visualization Food and Beverage
innovative technology (Alsetoohy et al., 2019). Artificial operations, which help reduce cost and increase profit.
intelligence (AI) can be specified as the science and Characteristics of IAT have many resemblances with the
engineering of creating intelligent machines, showcasing FSC process that drives extensive possible use in hotels.
knowledge, reasoning, learning, planning, perception, IAT is treated as a suitable technology to restructure the
communication and moving and manipulating items. FSC because of IAT characteristics such as anxiety,
Intelligent agent technology (IAT) is helping to collaboration, autonomy and intelligence for the FSC (Di
transform the hospitality industry. One can draw many Vaio et al., 2020). Therefore, the implementation of IAT in
instances from the global travel brands; for example, FSC may lead to various benefits such as integration of
Uber, Marriot and Hilton utilize AI-based solutions to enterprises, information sharing, dynamic configuration
understand customer behaviour, such as client preferences, and joint operation. There will be a reduction in manual
journey patterns, travel choices and payment methods. By intervention, lead-time, variability, increased repeatability,

1 Department of Operations, GITAM Institute of Management, GITAM (Deemed to be University), Visakhapatnam, Andhra Pradesh, India.

Corresponding author:
Subhodeep Mukherjee, Department of Operations, GITAM Institute of Management, GITAM (Deemed to be University), Visakhapatnam, Andhra
Pradesh 530045, India.
E-mail: [email protected]
Mukherjee and Chittipaka 439

reliability (R) and pace of response to factors (Di Vaio IAT’s features are to re-engineering FSC, which includes
et al., 2020). IAT utilization in the FSC on both food operating without any human interventions, that is,
acquisition practices and execution is a positive effect. automatic; interaction with other humans, that is, social
This study will help the hotel authorities for taking interaction; reacting promptly to environmental changes,
decisions for the adoption of this advanced technology. that is, responsiveness; proactiveness and mobility.
Several researchers have researched hospitality IT Advances in IT and the rise in competition in the
developments and IAT. However, there were few research food industry have forced them to go into structural
studies conducted by using IAT adoption in FSC. Hence, and organizational changes. It will help to overcome
in this study, we have explored the use of IAT in FSC inefficiencies and remaining competitive (Samara et al.,
and identified the factors which will implement the 2020). Also, due to the internet, FSC functions have built
adoption process based on technological, organizational scopes for incorporating data into the choice-building
and environmental (TOE) perspectives and the hotel process along with the SC partners (Jalilvand et al., 2019;
administrators’ approach towards utilization of IAT in Samara et al., 2020). IAT will overcome the inefficiencies
FSC; and finally, the relationship between hotel manager of poor information flow in FSC (Mangina & Vlachos,
approach towards selection of IAT in FSC and their 2005). IAT will share real-time information and decision-
expectation for future acceptance. The article measures the making, which will create an effective and efficient
intention of IAT adoption in the hotel FSC. Previous studies response system for the FSC. There will be an improved
measured the intention to adopt IAT (Alsetoohy et al., lead-time, manual intervention, delivery performance,
2019), AI and robotics in the hotels of Dubai (Nam et al., variability and repeatability (Barton & Thomas, 2009).
2020) and cloud computing in the healthcare supply chain IAT will improve food tracing systems and implement
(SC) (Baral & Verma, 2021). Drastic developments in autonomous operations (Zhang & Xie, 2006). IAT will
technology, change in the mindset of the customers and help search the suppliers automatically and then order the
competition existing in the hotel industry forcing the products (Shirazi & Soroor, 2007). IAT could perform
luxury hotels to adopt the latest innovative technology in better coordination in the procurement decisions of FSC
the process. Hence, this study has been conducted in (Sujatha, 2011). Grey et al. (2005) suggested that there will
developing nations’ context, which supports adopting the be cost reduction, improvement in sharing of the
latest and innovative technologies. It will help in increasing information, increased resource allocation efficiency and
the efficiency of the FSC. the ability to handle risk management with IAT usage.
Further, the article is discussed in the following section. The challenges which are faced by the hotels currently
The second section describes the literature review and the due to the use of existing technologies (e.g., EDI, ERP,
advancement of the hypothesis. The third section discusses RFID) can switch to IAT, which will undoubtedly help in
the research methodology for the study. The fourth section overcoming the inefficiencies of the FSC because of
gives the result and discussion. The fifth section has an insufficient flow of information and also adding flexibility
implication for the study. The sixth section provides the and visibility to the FSC (Kittipanyangam & Tan, 2020).
conclusion of the study. IAT has applications in service and manufacturing
industries, for instance, enterprise integration and
Literature Review and manufacturing planning, scheduling and stock control. IAT
Advancement of Hypothesis has been responsible for performing food procurement
practices (Kim et al., 2021). Due to the properties of IAT,
Intelligent Agents Technology in the Food there is an exponential increase in opportunities in
Supply Chain e-business.
Intelligent agents can make decisions or perform a service
based on its environment, experiences and user input. Its Theoretical Foundation
primary function is to provide a better use for the user and
manage and interact with a computer-based application Technological-Organizational-Environmental Framework
(Lai & Hung, 2018). IAT is used for real-time pricing Tornatzky et al. (1990) stated the acceptance of innovation
strategies in an SC network (Mangina & Vlachos, 2005). consists of three dimensions technological-organizational-
Jafari (2002) defined an agent as a software tool linked to environmental, which is popularly known as the TOE
other applications or databases running on one or more framework. Individual adoption research deals with the
computers. The intelligent agent’s primary function is to behaviour and intention of a particular person working in
manage, use and interact with computer applications (Yang a firm to adopt the latest technology, on the other hand,
et al., 2021). IAT gathers information or performs some organizational adoption research analyses the factors that
tasks without any human intervention. The difference lead to the adoption of the latest technology by the
between IAT and traditional software is autonomous, companies (Hiran & Henten, 2020; Rogers, 1995; Skafi
adaptive, personalized and proactive (Shirazi & Soroor, et al., 2020). These perspectives influence technology
2007). adoption in the organization’s decision-making. The
440 FIIB Business Review 11(4)

technological perspective includes compatibility, complexity hardware, installation, integration, consultancy support
(COMP) and relative advantage (RA) (Cruz-Jesus et al., (Stjepić et al., 2021). Hence, the costs have been identified
2019). As per Tornatzky et al. (1990), the organization’s as a critical element for adopting IAT in the FSC. Previous
perspective has ‘firm size and capabilities; the centralization, studies (Ahmadi et al., 2017; Alsetoohy et al., 2019;
formalization, COMP of its managerial structure and the Johnson & Diman, 2017; Oliveira et al., 2014) elaborated
quality of its human resource’. The environmental context cost as a critical element. As a result, the hypothesis that
comprises the organization’s environment, such as the has been proposed is as follows:
industry’s structure, competitive advantage and government
support (Tornatzky & Klein, 1982). H4: C influences the adoption of IAT in the FSC.
Technological Factors (TF) Organizational Factors (OF)
Relative Advantage (RA): The degree to which the adopters Innovation Adoption (IA): IA refers to firms’ technological
prefer new technology more than the traditional or presently and financial capabilities (Lin, 2014). There are factors
used technologies (Gangwar et al., 2015). It optimizes cost, like technological readiness and financial readiness.
time, economic profitability and increases operational Financial readiness means how much an organization can
excellence (Makena, 2013). It also improves client spend on its latest technology adoption (Tashkandi &
satisfaction and decreases data entry (Shee et al., 2018). Al-Jabri, 2015). Meanwhile, technological readiness
Previous studies had used RA (Alsetoohy et al., 2019; Badi means how an organization can adopt the latest technology
et al., 2021; Baral & Verma, 2021; Chen et al., 2021; Nam and go against the change resistance (Kumar &
et al., 2020; Pillai & Sivathanu, 2020). Hence, the Krishnamoorthy, 2020). Previous studies (Alsetoohy et al.,
hypothesis proposed as follows: 2019; Pillai & Sivathanu, 2020; Priyadarshinee et al.,
2017) talked about this factor. As a result, the hypothesis
H1: RA influences the adoption of IAT in the FSC. that has been proposed is as follows:
Reliability (R): It refers to the ability of the system to H5: IA influences the adoption of IAT in the FSC.
function accurately, which leads to significant satisfactory
service quality, low errors and faster recovery rates Top Management Support (TMS): TMS help in adopting
(Alkhater et al., 2018; Siddik et al., 2021). It is a critical the latest technology by motivating and supporting
element for adopting this technology. IAT can reveal the employees. They also provide the money for the
product prices, check lead times, track order status, implementation of the technology. They also create an
generate statistical reports for upper management and organizational strategy for implementing the latest
make purchasing decisions without the need for human technology (Abed, 2020; Alharbi et al., 2016). Previous
intervention. One of the most critical components is the studies (Alharbi et al., 2017; Alsetoohy et al., 2019; Badi et
strategic partnership in the whole SC process, which leads al., 2021; Johnson & Diman, 2017; Senyo et al., 2016;
to the essential sharing of information. ‘Reliability’ has Stjepić et al., 2021) had used TMS and found it to be an
been discussed in many previous studies (Alharbi et al., essential component. As a result, the proposed hypothesis
2016; Alkhater et al., 2018; Alshamaila et al., 2013; Ooi is as follows:
et al., 2018). So, the proposed hypothesis is as follows:
H6: TMS influences the adoption of IAT in the FSC.
H2: R influences the adoption of IAT in the FSC. IT Awareness (ITA): The staff or manager needs to
Complexity (COMP): COMP is an innovation that is understand new and advanced IT, which will depict what
relatively difficult to utilize and understand (Kumar & technology the firm will be adopting (Low et al., 2011).
Krishnamoorthy, 2020). Due to a lack of skills and ITA is considered an essential driver for IAT adoption for
knowledge (Senyo et al., 2016). There is a need to combine SC operations, considering IT resources’ human component
the existing hotels’ IT infrastructure and FSC database and (Priyadarshinee et al., 2017). Most luxury hotels are being
connect with the vendors (Wong et al., 2020). Various worked through worldwide administration organizations
researchers have used this component in their studies that execute state-of-the-art innovation to oversee the FSC.
(Ahmadi et al., 2017; Alsetoohy et al., 2019; Badi et al., This will be beneficial for awareness of new technologies
2021; Chen et al., 2021; Gökalp et al., 2020). As a result, of the hotel managers and accelerate the IAT adoption in
the following hypothesis can be proposed: the FSC. Previous studies (Alsetoohy et al., 2019;
Priyadarshinee et al., 2017) had identified ITA. So, the
H3: COMP influences the adoption of IAT in the FSC. proposed hypothesis is as follows:

Cost (C): It refers to the expense for adopting and H7: ITA influences the adoption of IAT in the FSC.
implementing the new advanced technologies, which are
required for firms’ restructuring and re-engineering of the Skilled Employees (SE): It is an essential factor that will
methods of FSC along with costs for other supporting impact the IAT adoption process. The employees need to
Mukherjee and Chittipaka 441

have IT skills, knowledge and a positive attitude towards Krishnan, 2020; Stjepić et al., 2021). A trading partner
the IAT adoption. When the staff lacks a basic understanding should use e-business applications only when many trading
of IT, they will not change the current working style, firms utilize them for business purposes. Demands from
creating a conflict with top management (Narmetta & prevailing accomplices are a significant factor in another
Krishnan, 2020). Previous studies (Alharbi et al., 2017; innovation reception, and associations may receive the
Alsetoohy et al., 2019; Johnson & Diman, 2017) discussed innovation to demonstrate their quality as a firm trading
SE as an essential component. Hence, the hypothesis can partner (Kamble et al., 2019). Hence, hotels need to
be proposed as follows: preserve a beneficial supplier–buyer relationship if the
supplier is dominant and has adopted or aims to adopt IAT.
H8: SE influences the adoption of IAT in the FSC. Previous studies (Alsetoohy et al., 2019; Chen et al., 2021;
Kouhizadeh et al., 2021; Priyadarshinee et al., 2017) had
Environmental Factors (EF)
identified SP as a critical component. Hence the hypothesis
Environmental Uncertainty (EU): It refers to various can be proposed as follows:
environmental issues related to technologies, competitors,
suppliers and customers (Hiran & Henten, 2020). There H12: SP influences the adoption of IAT in the FSC.
has been a positive relationship between the company’s
structure and innovation because uncertainty leads to the
unavailability of information (Latan et al., 2018). There is Research Methodology
a requirement of information accuracy to respond as
The responses are collected using primary and secondary
conditions necessitate. Experts uncovered that organizations
sources. Secondary sources include a literature review and
could oversee vulnerabilities in the business climate when
other reports, and the primary source consists of a collection
they moved up to refined innovation (Pateli et al., 2020).
of data through a structured questionnaire. The questionnaire
Previous studies had used EUs (Alsetoohy et al., 2019;
method was previously used in many studies (Aslam et al.,
Senyo et al., 2016). As a result, the proposed hypothesis is
2021; Baral & Verma, 2021; Wong et al., 2020). The latent
as follows:
variable indicators were adopted from previous studies in
different segments mentioned in the tabular form in the
H9: EF influence the adoption of IAT in the FSC.
appendices. All the latent variables were measured using
Competitive Pressure (CP): CP means the firms’ pressure three to seven statements (indicators) for confirmation
from their next competitors in the market in the same during the survey. The components were assessed utilizing
industry. It is defined as the extent of the competitive a seven-point Likert scale, that is, ‘strongly disagree = 1’ to
atmosphere within the industry in which the companies ‘strongly agree = 7’. Seven-point Likert scale had been used
operate. This pressure, in turn, helps firms accept the latest in previous studies (Baral & Verma, 2021; Wong et al.,
technologies (Tashkandi & Al-Jabri, 2015). It has its effect 2020). Structural equation modelling (SEM) has been
on a firm’s incentives to undertake product and process utilized in this analysis, and for this 200 and above sample
innovations. Previous studies (Alsetoohy et al., 2019; Amron size is considered adequate (Gerbing & Anderson, 1988;
et al., 2019; Badi et al., 2021; Chen et al., 2021; Stjepić et al., Hair et al., 2012; Kline, 2012).
2021) had talked regarding this component. As a result, the The questionnaire was developed in the English
hypothesis that has been proposed is as follows: language. An online survey is used to collect data as it saves
time and expenses required for travelling (Kamble et al.,
H10: CP influences the adoption of IAT in the FSC. 2019). The responses from the target population are
collected through emails. This research’s responses were
Information Intensity (II): It means the shared information
taken from employees who make IT decisions for luxury
present in the firm’s products or services (Alshamaila et
hotels in India. It was found that the clients of luxury hotels
al., 2013). II products are more complex than other
were less price-sensitive. Also, these hotels’ staff was
products, and more information is there to identify their
considered highly technology-oriented because of their
attributes (Alkhater et al., 2018; Priyadarshinee et al.,
higher financial capability. A simple random sampling
2017). The firms related to the service sector are likely to
method has been used to generalize the results more
contain more information in their product and services than
appropriately and allow the presence of various firms (Hair
other manufacturing products (Latan et al., 2018). Previous
et al., 2010). The Cronbach alpha values for the measurement
studies had used II (Alsetoohy et al., 2019; Priyadarshinee
items were found to be reliable and valid, with values higher
et al., 2017). So, the proposed hypothesis is as follows:
than 0.65 (Nunnally, 1994). We sent the questionnaires to
650 respondents in the final survey, including IT managers,
H11: II influences the adoption of IAT in the FSC.
procurement managers and top executives in five-star
Supplier’s Pressure (SP): To maximize the benefits among hotels. However, we have received only 427 responses
the enterprises, SC management technologies should be returned, with a response rate of 65.69 per cent. After data
adopted by the multiple firms involved (Narmetta & screening, we found only 329 valid responses which can be
442 FIIB Business Review 11(4)

Table 1. Demographics Characteristics. used for the analysis. To check the biasness of the collected
data, Exploratory factor analysis (EFA) was performed, and
Item Frequency Percentage the results show that the first factor explains maximum
Gender covariance (9.677%), which is below the recommended
Male 178 54.10% value of 50 per cent (Podsakoff, 2003).
Female 151 45.90%
Participants’
position Demographics of Respondents
IT managers 161 48.94%
Table 1 shows the demographics of the respondents. In
Procurement 96 29.18%
managers
total, 54.10 per cent of the respondents who participated in
Top executives 72 21.88% the survey were male and 45.90 per cent were female.
Age of the In total, 48.94 per cent of the respondents who participated
respondents in the survey were IT managers, 29.18 per cent of the
18–25 years 42 12.77% respondents who participated were procurement managers
26–35 years 112 34.04% and 21.88 per cent were top executives. The age of the
36–45 years 97 29.48% respondents were 18–25 years (12.77%), 26–35 years
Above 46 years 78 23.71% (34.04%), 36–45 years (29.48%) and above 46 years
Educational degree of the respondents (23.71%). In total, 53.50 per cent of the respondents who
BSC/BA/BBA/B. 134 40.73% participated in the survey were having an educational
tech/BE degree of MSC/MA/MBA/M.tech/ME, 40.73 per cent of
MSC/MA/MBA/M. 176 53.50% the respondents who participated in the survey are having
tech/ME
educational degree BSC/BA/BBA/B.tech/BE and 5.78 per
PhD 19 5.78%
cent of the respondents participated in the survey are
Industry experience of the respondents
having educational degree PhD. In total, 57.45 per cent of
0–5 years 89 27.05%
the respondents who participated in the survey are having
6–10 years 189 57.45%
industry experience between 6 to 10 years, 27.05 per cent
Above 10 years 51 15.50%
of the respondents who participated in the survey have
Source: Author’s own (output obtained from survey done).

Table 2. Cronbach Alpha, Factor Loadings.

Variables Items Cronbach’s Alpha Factor Loading

Top management support .926
1
Top management support .948
2
Top management support 0.937
Top management support .922
3
Top management support .860
4
Supplier’s pressure 1 .808
Supplier’s pressure 2 .852
Supplier’s pressure 0.863
Supplier’s pressure 3 .866
Supplier’s pressure 4 .717
Relative advantage 1 .856
Relative advantage 2 .873
Relative advantage 0.866
Relative advantage 3 .895
Relative advantage 4 .716
Cost 1 .800
Cost 2 .811
Cost 0.849
Cost 3 .774
Cost 4 .855
IT awareness 1 0.918 .872
IT awareness IT awareness 2 .924
IT awareness 3 .939
Skilled employees 1 0.902 .941
Skilled employees Skilled employees 2 .940
Skilled employees 3 .820
(Table 2 continued)
Mukherjee and Chittipaka 443

(Table 2 continued)

Variables Items Cronbach’s Alpha Factor Loading

Information intensity 1 0.889 .935
Information intensity Information intensity 2 .924
Information intensity 3 .845
Complexity 1 0.846 .817
Complexity Complexity 2 .897
Complexity 3 .786
Innovation adoption 1 0.833 .824
Innovation adoption Innovation adoption 2 .839
Innovation adoption 3 .827
Competitive pressure 1 0.796 .835
Competitive pressure Competitive pressure 2 .877
Competitive pressure 3 .790
Environmental uncertainty 0.744 .787
1
Environmental uncertainty .850
Environmental uncertainty
2
Environmental uncertainty .799
3
Reliability Reliability 1 0.733 .804
Reliability 2 .823
Reliability 3 .685

Source: Author’s own (output obtained from SPSS 20.0. authors’ results).

industry experience between 0 and 5 years and 15.50 per per cent, component 9 extracted 4.465 per cent, component
cent of the respondents who participated in the survey are 10 extracted 3.657 per cent, component 11 extracted 3.392
having industry experience above 10 years. per cent and component 12 extracted 3.097 per cent. So,
the total variance explained by all the 12 components is
Results and Discussion 76.198 per cent. The next step is to perform the rotated
component matrix, which helps group the items in a
Reliability and Validity particular group. The method used is the varimax rotation
Cronbach’s Alpha method. Table 2 shows the factor loading for the rotated
component matrix.
Assessment of R helps examine the degree of internal
consistency between variable measurement items and its
freedom of error at any point in time (Kline, 2015). Table 2 Confirmatory Factor Analysis (CFA)
shows Cronbach’s alpha values for all variables. It is used
to measure the R of the data (Hair et al., 2012). The values In this step, CFA is being measured. A model is developed
should be greater than 0.70, that is, the recommended level using AMOS 22.0. The developed model has 12 latent
(Nunnally, 1994). variables. Three parameters are measured composite
reliability (CR), convergent validity and discriminant
validity. The developed model has only independent
Exploratory Factor Analysis (EFA) variables. All the parameters are within the threshold level
The second step is to perform EFA using SPSS 20.0. (Byrne, 2010). The goodness of fit indices was χ2 = 811.087
Kaiser-Meyer-Olkin (KMO) value for the current study is with df =674, RMSEA = 0.025, IFI = 0.982, CFI = 0.982,
0.742, greater than the 0.60 minimum level (Hair et al., TLI = 0.979 and GFI = 0.949, which were within the
2010). The extraction method is used to group the threshold values (Hair et al., 2010).
components. All the components are being grouped into
Construct Validity (CV)
twelve components using the principal component analysis
method. For the component 1 extracted total variance is A significant logical idea to assess the validity of a measure
11.262 per cent, followed by component 2 extracted 10.533 to develop a CV. CV is the degree to which a test quantifies
per cent, component 3 extracted 8.747 per cent, component the idea or development that it is expected to quantify. CV
4 extracted 7.723 per cent, component 5 extracted 6.464 is generally tried by estimating the relationship in appraisals
per cent, component 6 extracted 5.910 per cent, component got from a few scales. There is no cut-off that characterizes
7 extracted 5.725 per cent, component 8 extracted 5.314 CV (DeVellis et al., 2003).
444 FIIB Business Review 11(4)

Table 3. Model Fit Measures for the Confirmatory Factor Table 4. Composite Reliability and Average Variance
Analysis for the Factors. Extracted for the Factors.

Default Model Average Variance

Goodness-of-Fit for the CFA Variables Composite Reliability Extracted
Indices Model Accepted Parameters Relative 0.904 0.835
Absolute goodness-of-fit measure advantage
Reliability 0.815 0.770
|2/df (CMIN/ 1.203 Lower Limit:1.0; Upper
Complexity 0.873 0.833
DF) Limit 2.0/3.0 or 5.0
Cost 0.884 0.810
GFI 0.949 >0.90
Innovation 0.869 0.830
Incremental fit measure adoption
CFI 0.982 >0.90 Top 0.800 0.914
IFI 0.982 >0.90 management
TLI 0.979 >0.90 support
Parsimony fit IT awareness 0.937 0.912
measure Skilled 0.929 0.900
PCFI 0.848 >0.50 employees
PNFI 0.78 >0.50 Environmental 0.854 0.812
Absolute uncertainty
badness of fit Competitive 0.873 0.834
measure pressure
RMSEA 0.025 within 0.08 Supplier’s 0.886 0.811
pressure
Source: Author’s own (output obtained from AMOS 22.0. authors’
Information 0.929 0.901
results).
intensity
Source: Author’s own (output obtained from AMOS 22.0. authors’
Composite Reliability (CR) results).
CR was also measured for all the components. It is
calculated for internal consistency reliability because of its
ability to provide better results (Henseler et al., 2009). The Structural Model and Testing of
CR of the constructs should be greater than 0.70, which is Hypothesis
the accepted threshold level (Hair et al., 2014). Table 4 For testing, the hypothesis SEM is performed using AMOS
shows the values of CR. 22.0. Figure 1 represents the structural model for the IAT
adoption model for the factors. All the model fit parameters
Convergent Validity
are shown in Table 6, which satisfies all the threshold
Convergent validity exists when the theoretical construct levels (Byrne, 2010). The goodness of fit indices was χ2 =
developed for the study has a strong correlation with the 1,363.244 with df =890, RMSEA = 0.04, IFI = 0.944, CFI
items used to test it. In other words, the variance of the = 0.943, TLI = 0.940 and GFI = 0.921, which were within
indicators of a given structure must be highly shared. It is the threshold values suggested by Hair et al. (2010). For all
measured with the help of the average variance extracted the constructs in our model, the fit indices are acceptable.
(AVE). AVE for the constructs must not be greater than 0.50, Table 7 shows the path analysis result of the structural
which is the accepted threshold level (Fornell & Larcker, model for the factors. The result demonstrates that all the
1981). Table 4 shows the values of AVE for the factors. 12 hypotheses are being accepted. In total, 12 hypotheses
support the p-value (Hair et al., 2012). The loadings of the
Divergent or Discriminant Validity
estimates are within the range of 0.50 (Byrne, 2010). The
Discriminant validity investigates how distinct the values of the standard errors are in the range of –2.5 to
constructs in a proposed model are from one another. To +2.5. As per Hair et al. (2013), the values of critical ratios
assess discriminant validity, the square roots of the AVEs are greater than 1.96. Hence, it can be stated that the 12
were compared to the correlation for each construct. The factors have a positive impact on IAT. The structural model
selected construct’s square root AVE should be greater than explains 52.5 per cent of IAT variance for the factors.
the correlations between the specific construct and all the H1 tested the influence of RA on IAT in the FSC. The
other constructs in the model (Fornell & Larcker, 1981). As final structural model showed that RA and IAT in the FSC
the within-construct variance exceeded the between- were supported (β = .128, p = .000). Previous studies on AI
construct variance, discriminant validity was supported. As for talent acquisition in IT firms supported this study (Pillai
a result, divergent or discriminant validity is satisfied. & Sivathanu, 2020). Nam et al. (2020) conducted interview-
Table 5 shows the matrix of discriminant validity for the based research in the hotel industry of Dubai to study the
technological factors. adoption of AI and robotics and found that AI provides RA
Mukherjee and Chittipaka 445

Table 5. Discriminant Validity for the Factors.

Variance Extracted between Factors

TMS SP RA C ITA SE II COMP IA CP EU R
TMS 1
SP 0.746 1
RA 0.766 0.677 1
C 0.746 0.657 0.677 1
ITA 0.833 0.745 0.764 0.744 1
SE 0.823 0.734 0.754 0.650 0.663 1
II 0.824 0.735 0.755 0.734 0.822 0.811 1
COMP 0.765 0.676 0.696 0.675 0.763 0.752 0.753 1
IA 0.762 0.673 0.693 0.673 0.760 0.749 0.750 0.691 1
CP 0.765 0.677 0.696 0.676 0.764 0.753 0.754 0.695 0.692 1
EU 0.748 0.659 0.678 0.658 0.746 0.735 0.736 0.677 0.674 0.677 1
R 0.714 0.625 0.645 0.625 0.712 0.701 0.702 0.643 0.641 0.644 0.626 1
Source: Author’s own (output obtained from AMOS 22.0. authors’ results).
Note: RA = relative advantage; R = reliability; COMP = complexity; C = cost; IA = innovation adoption; TMS = top management support; SE = skilled
employees; ITA = IT awareness; EU = environmental uncertainty; CP = competitive pressure; II = information intensity; SP = supplier’s pressure.

Table 6. Model Fit Parameters of the Structural Model for the

Factors. benefits and R on the administrators of hotels towards its
acceptance rate is theoretically constant with Alkhater
Goodness-of-Fit Default Model for et al. (2018) and Alharbi et al. (2016). H3 tested the
Indices the Factors Benchmark
influence of COMP on IAT in the FSC. The final structural
Absolute goodness-of-fit measure model showed that COMP and IAT in the FSC were
|2/df (CMIN/DF) 1.532 Lower limit:1.0; supported (β = .186, p = .000). The hotels planning to adopt
Upper limit 2.0/3.0 IAT first need to check the complications associated with
or 5.0 the IAT mechanism, its applications and the benefits gained
GFI 0.921 >0.90 through IAT. Prior research conducted by Alsetoohy et al.
Incremental fit measure (2019) supported this study. Alsetoohy et al. (2019) showed
that COMP negatively affects hotel managers’ attitudes in
CFI 0.943 >0.90
adopting IAT in the FSC. Nam et al. (2020) found that
IFI 0.944 >0.90   integrating AI with the existing technology will be very
TLI 0.940 >0.90   difficult.
Parsimony fit measure H4 tested the influence of cost on IAT in the FSC. The
PCFI 0.887 >0.50 final structural model showed that cost and IAT in the FSC
were supported (β = .517, p = .000). Adopting and utilizing
PNFI 0.803 >0.50  
IAT in the FSC is often considered an additional cost,
Absolute badness of fit measure which could be a barrier to its adoption. Pillai and Sivathanu
RMSEA 0.04 within 0.08 (2020) researched AI for talent acquisition in IT firms and
showed that cost plays a vital role in adopting AI. Alsetoohy
Source: Author’s own (output obtained from AMOS 22.0. authors’
et al. (2019) showed that cost negatively affected hotel
results). managers’ attitudes in adopting IAT in the FSC. H5 tested
the influence of IA on IAT in the FSC. The final structural
model showed that IA and IAT in the FSC were supported
to hotels. IAT will help forecast accurately and plan for
(β = .163, p = .000). A prior study conducted by Alsetoohy
banquets, room services and labour cost reduction. IAT’s
et al. (2019) showed that the organizational readiness to
positive impact on cost reduction, increase in lead time for adopt IAT for the FSC did not support their research. Pillai
performing operations like cleaning and improved delivery and Sivathanu (2020) studied the factor of HR readiness in
performance (Alsetoohy et al., 2019). adopting AI and showed how HR readiness would help
H2 tested the influence of R on IAT in the FSC. The employees overcome the change resistance. H6 tested the
final structural model showed that R and IAT in the FSC influence of TMS on IAT in the FSC. The final structural
were supported (β = .313, p = .000). The effect of IAT’s model showed that TMS and IAT in the FSC were supported
446 FIIB Business Review 11(4)

Figure 1. Intelligent Agents Technology Adoption Model in Food Supply Chain.

Source: Author’s own (output obtained from AMOS 22.0. authors’ results).
Note: RA = relative advantage; R = reliability; COMP = complexity; C = cost; IA = innovation adoption; TMS = top management support; SE = skilled
employees; ITA = IT awareness; EU = environmental uncertainty; CP = competitive pressure; II = information intensity; SP = supplier’s pressure; IAT
= intelligent agent technology.

(β = .159, p = .000). Alsetoohy et al. (2019) showed that H7 tested the influence of ITA on IAT in the FSC. The
the management encouragement comprised of TMS and final structural model showed that ITA and IAT in the
knowledge of IAT in the adoption of IAT in the FSC did not FSC were supported (β = .400, p = .000). Most luxury
support their study. Pillai and Sivathanu (2020) found that hotels are being worked through worldwide administration
TMS plays a vital role in the adoption of AI. organizations that execute state-of-the-art innovation to
Mukherjee and Chittipaka 447

Table 7. Path Analysis Result of the Structural Model for the Factors.
Estimate Standard Errors Critical Ratios P Hypothesis
Intelligent agent technology ! 0.128 0.063 2.03 .00 Supported
Relative advantage
Intelligent agent technology ! 0.313 0.068 4.60 .00 Supported
Reliability
Intelligent agent technology ! 0.186 0.041 4.54 .00 Supported
Complexity
Intelligent agent technology ! 0.517 0.062 8.34 .00 Supported
Cost
Intelligent agent technology ! 0.163 0.067 2.43 .00 Supported
Innovation adoption
Intelligent agent technology ! 0.159 0.047 3.38 .00 Supported
Top management support
Intelligent agent technology ! 0.400 0.048 8.33 .00 Supported
IT awareness
Intelligent agent technology ! 0.294 0.07 4.20 .00 Supported
Skilled employees
Intelligent agent technology ! 0.178 0.09 1.98 .00 Supported
Environmental uncertainty
Intelligent agent technology ! 0.111 0.047 2.36 .00 Supported
Competitive pressure
Intelligent agent technology ! 0.431 0.066 6.53 .00 Supported
Information intensity
Intelligent agent technology ! 0.609 0.078 7.81 .00 Supported
Supplier’s pressure
Source: Author’s own (output obtained from AMOS 22.0. authors’ results).

oversee the FSC. This will be beneficial for awareness for technologies or lose the business. Alsetoohy et al. (2019)
new technologies of the hotel managers and accelerate the showed that the CP in adopting IAT in the FSC did not
IAT adoption in the FSC (Alsetoohy et al., 2019). H8 tested support their study. Pillai and Sivathanu (2020) showed
the influence of SE on IAT in the FSC. The final structural that CP from the revival companies influences the firms in
model showed that SE and IAT in the FSC were supported adopting AI.
(β = .294, p = .000). Alsetoohy et al. (2019) estimated the H11 tested the influence of II on IAT in the FSC. The
quality of human resources and found a positive relationship final structural model showed that II and IAT in the FSC
for adopting IAT in the FSC. In past research, it was found were supported (β = .431, p = .000). Also, Alsetoohy et al.
that employees who know IT remain more motivated and (2019) showed a positive relationship of II in adopting IAT
ready to embrace the latest innovative technologies in the FSC. H12 tested the influence of SP on IAT in the
(Johnson & Diman, 2017). The hotel staff with IT FSC. The final structural model showed that SP and IAT in
knowledge showed positive results in adopting the newest the FSC were supported (β = .609, p = .000). Pillai and
technology in the FSC. H9 tested the influence of the EU Sivathanu (2020) showed a positive relationship for the
on IAT in the FSC. Alsetoohy et al. (2019) showed that the support of AI in their research. Demands from prevailing
EU adopting IAT in the FSC did not support their study. In accomplices are a significant factor in another innovation
prior studies (Alsetoohy & Ayoun, 2018; Patterson et al., reception, and associations may receive the innovation to
2003), EUs positively impacted firm structure and demonstrate their quality as a firm trading partner (Kamble
innovation. As uncertainty lacks information or data, there et al., 2019; Kouhizadeh et al., 2021).
is a need to adopt these latest innovative technologies
(Patterson et al., 2003). It will help in enhancing the
performance of the FSC. The final structural model Implication of the Study
supported EU and IAT in the FSC (β = .178, p = .000).
H10 tested the influence of CP on IAT in the FSC. The
Managerial Implications
final structural model showed that CP and IAT in the FSC This study will help the hotel managers and top management
were supported (β = .111, p = .000). Advanced technologies for taking decision towards the adoption of IAT in their
can strengthen the firms’ competitive edge by adopting hotels. IAT benefits traditional systems by developing a
IAT, which will also help them perform better than their relationship between the clients and partners. It will
competitors. When RFID was introduced, companies like encourage the managers to frame the organizational
Kmart and Wal-Mart pressured their vendors to adopt these strategies for the future. IAT helps make purchasing
448 FIIB Business Review 11(4)

decisions without humans’ interference. It provides a enough, so few managers may think adopting such
dedicated search for checking the lead time, item prices, technology may waste time and cost. Empirically, the
monitoring the status of orders and provides statistical upgradation to new technology from the current one
reports for top management. As a result, before migrating should be made very carefully to enjoy the success. As a
or adopting IAT, they must consider all relevant factors. result of all the above circumstances, some managers may
IAT will help the hotel management to do its task without prefer to wait until proven success. This study also found
much human intervention. Managers will be able to that most hotels’ top management is ready to adopt the
perform efficiently and effectively with the adoption of latest innovation in their hotels and create a competitive
IAT. Managers make decisions for their companies; they advantage.
must weigh the benefits and drawbacks of the IAT. Thus, this research experimentally explored: the usage
of IAT in FSC and its implementation using TOE elements
Theoretical Implications and the in administrators’ approach towards utilization of
IAT in FSC; and finally, the relationship between inn
The current study has significantly contributed to the controllers’ approach towards selection of IAT in FSC
theoretical research and practices. This research has and their expectation for future acceptance. This research
contributed considerably to the usage of IAT in the FSC. encourages the hotels to adopt IAT or impede them in
This research validates the TOE framework, which had moving to it. The gathered information was studied in
been used in many IAs in the past (Abed, 2020; Ahmadi two phases. At the measurement level, validity and R
et al., 2017; Alazab et al., 2021; Alsetoohy et al., 2019; were used to confirm the research’s estimations. Also, at
Braunscheidel & Suresh, 2009; Chong & Chan, 2012; the structural level, the connections between the
Ghode et al., 2020). This study identified 12 factors RA, components and firms’ aim to adopt IAT in luxury hotels
R, COMP, C, IA, TMS, ITA, SE, EU, CP, II and SP. All the were studied to investigate factors that were decidedly
12 hypotheses are accepted, and previous studies support connected with IAT in India; along these lines, the
them. This study on IAT adoption in the luxury hotels of proposed hypothesis was evaluated in this stage. The final
India is a unique one as such studies are not available. This model helps hotel decision-makers considering IAT
study will help the researcher and professional to adoption in the FSC.
understand the impact of IAT in the FSC.

Limitations and Future Research

Conclusions This research put light mainly on the luxury hotel segment
The current research determined the factors affecting the in India. This research can be done to compare the
hotel’s acceptance of IAT in the FSC with a conceptual outcomes within specific states of a country. This research
framework derived from the TOE framework and diffusion primarily focused on the essential components of IAT
of innovation theory. IAT usage in FSC and its relation acceptance in the FSC. Future research may also streamline
between TOE components and intention towards IAT research findings with various hotels nationwide to
adoption in FSC were researched empirically regarding demonstrate more precise outcomes. Henceforth,
the Indian perspective. The primary aim of this research comparative investigations should be possible for different
was to decide whether the TOE framework’s elements nations and states. Further examination should be possible
impact the IAT in India’s hotel industry. A significant in other sectors.
number of studies have been conducted on hospitality, its
developments, and IAT; however, little research has been ORCID iDs
directed to decide the IAT selection in the FSC. The Subhodeep Mukherjee https://orcid.org/0000-0002-6863-4881
study’s findings are that the technology is not mature
Venkataiah Chittipaka https://orcid.org/0000-0002-7804-0796
Mukherjee and Chittipaka 449

Appendix A. Measurement Items.

Constructs Variables Labels Measures Sources

RA1 The intelligent agent technology adoption provides Rogers (1995)
timely decision-making information.
RA2 Intelligent agent technology implementation increases Rogers (1995)  
Relative today’s business profitability.
advantage RA3 Intelligent agent technology helps organizations to Author added
communicate better with their partner
RA4 Our productivity increase with the usage of intelligent Rogers (1995)  
agent technology services increases.
R1 Intelligent agent technology is regarded as a reliable Puklavec et al. (2018)
technology to deal with food supply chain trading
partners.
R2 The data movement needed for today’s hotel to contact Author added
Reliability
their trade partner is sufficient for intelligent agent
technology
Technological R3 In sharing sensitive information with our hotel suppliers, Author added
factors I would find intelligent agent technology safe.
COMP1 Employees find the skills needed for using these Rogers (1995)  
technologies too complex.
COMP2 It will be challenging to integrate intelligent agent Rogers (1995)
Complexity
technology into the existing process.
COMP3 My hotel considers intelligent agent technology Rogers (1995)
development to be a complex process.
C1 The intelligent agent technology cost is much higher than Makena (2013)
the benefits.
C2 Maintenance costs and intelligent agent technology Makena (2013)
support for the company are extremely high.
Cost
C3 Integrating intelligent agent technology into the current Makena (2013)
information management system will be prohibitively
costly.
C4 The budget of IT in the hotel is low. Author added
IA1 My hotel is ready for the latest innovative adoption in Priyadarshinee et al.
the field of technology. (2017)
IA2 The organization’s intelligent agent technology Priyadarshinee et al.
Innovation
recommendation feels comfortable. (2017)
adoption
IA3 A robust technology infrastructure would enable us Author added
to use intelligent agent technology, for example, high
bandwidth.
TMS1 The intelligent agent technology is enthusiastically Rogers (1995)  
adopted in the food supply chain by
the senior management.
Top TMS2 Adequate intelligent agent technology resources have Rogers (1995)  
management been allocated by top management.
Organizational
support TMS3 Our top management actively supports employees in Senyo et al. (2016)
factors
their day-to-day tasks to use new technologies.
TMS4 Top management is interested in the adoption of Senyo et al. (2016)
intelligent agent technology.
ITA1 In our organization, we still do not have the technical Priyadarshinee et al.
abilities to use intelligent agent technology. (2017)
ITA2 Efficient IT training is required. Priyadarshinee et al.
IT awareness
(2017)
ITA3 The staff can share their knowledge with each other. Priyadarshinee et al.
(2017)
SE1 The staff has technological capabilities to solve problems. Alharbi et al. (2016)
Skilled
SE2 The staff can quickly learn new technologies. Alharbi et al. (2016)
employees
SE3 The staff usually come up with new hotel ideas. Author added

(Appendix A continued)
450 FIIB Business Review 11(4)

(Appendix A continued)
Constructs Variables Labels Measures Sources
EU1 Intelligent agent technology enables the hotel to Senyo et al. (2016)
deal more effectively with political uncertainty.
Environmental EU2 Intelligent agent technology enables the hotel to deal Senyo et al. (2016)
uncertainty more effectively with demand uncertainty.
EU3 Intelligent agent technology enables my hotel to deal Author added
more effectively with food insecurity.
CP 1 An industry that uses intelligent agent technology in the Priyadarshinee et al.
food supply chain will press the hotel to do likewise. (2017)
Competitive CP 2 In my industry, there is a trend to use intelligent agent Priyadarshinee et al.
pressure technology in the food supply chain. (2017)
CP 3 Intelligent agent technology must be adopted since Author added
accurate data collection is possible.
Environmental
II1 The hotel relies on current information. Author added
factors
II2 For the hotel, reliable and accurate information must be Priyadarshinee et al.
Information
available. (2017)
intensity
II3 Whenever we need the information hotel needs to Author added
access information quickly.
SP1 Our primary providers usually set the communication Alsetoohy et al. (2019)
mode (e.g., fax, e-mail, etc.).
SP2 Our main suppliers decide about prices, schedules of Alsetoohy et al. (2019)
Supplier’s delivery, etc.
pressure SP3 The leading suppliers decide on the rules and regulations Alsetoohy et al. (2019)
for the processing of an internal hotel system.
SP4 The leading suppliers decide which applications for Alsetoohy et al. (2019)
information systems should be exchanged with my hotel.
IAT1 In food supply chain systems, I like the idea of using Alsetoohy et al. (2019)
intelligent agent technology.
Intelligent IAT2 The efficiency of our employees’ increases. Alsetoohy et al. (2019)
Intelligent agent
agent IAT3 Intelligent agent technology is intended for our hotel in Author added
technology
technology the future.
IAT4 I predict that in the future, this hotel will use intelligent Author added
agent technology.
Source: From literature review.

Appendix B. Research Model Variables and Sources.

Factors Sub-Factor Sources

Technological factors Relative advantage Alharbi et al. (2016), Alkhater et al. (2018), Alsetoohy et al. (2019), Badi et al.
(2021), Chen et al. (2021), Gangwar et al. (2015), Makena (2013), Senyo et al.
(2016)
Complexity Ahmadi et al. (2017), Badi et al. (2021), Chen et al. (2021), Gangwar et al.
(2015), Gökalp et al. (2020)
Cost Alsetoohy et al. (2019), Alshamaila et al. (2013), Amron et al. (2019),
Mrhaouarh et al. (2018)
Reliability Alharbi et al. (2017), Alkhater et al. (2018), Alsetoohy et al. (2019), Alshamaila
et al. (2013)
Organizational factors Innovation adoption Pillai & Sivathanu (2020), Priyadarshinee et al. (2017)
Top management support Abed (2020), Alazab et al. (2021), Alsetoohy et al. (2019), Clohessy et al.
(2019), Senyo et al. (2016)
Skilled employees Alharbi et al. (2017), Alsetoohy et al. (2019)
IT awareness Alsetoohy et al. (2019), Priyadarshinee et al. (2017), Raut et al. (2018)
Environmental factors Environmental uncertainty Alsetoohy et al. (2019), Kumar & Krishnamoorthy (2020), Senyo et al. (2016),
Sharma & Sehrawat (2020), Skafi et al. (2020)
Competitive pressure Alharbi et al. (2017), Cruz-Jesus et al. (2019), Oliveira et al. (2014), Senyo et al.
(2016), Sharma & Sehrawat (2020)
Information intensity Alsetoohy et al. (2019), Priyadarshinee et al. (2017)
Supplier’s pressure Alsetoohy et al. (2019), Kouhizadeh et al. (2021), Priyadarshinee et al. (2017)
Source: From literature review.
Mukherjee and Chittipaka 451

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About the Authors

Subhodeep Mukherjee is a Ph.D. student at the GITAM Institute of Management, GITAM (Deemed to be
University), Visakhapatnam, India. He obtained his Master’s degree from the Birla Institute of Technology,
Mesra, Ranchi India. His main research interests including Food Supply Chain Management, cloud
computing, blockchain technologies. He has publications in reputed journals and high indexed book
chapters. He has presented more nine papers in various conferences and has also received two best paper
and best paper presented awards. He has expertise in statistical techniques like SEM, etc. He can be reached
at [email protected]

Venkataiah Chittipaka is working as Professor in the area of Operations, Quality and Project Management
in GITAM Institute of Management, GITAM (Deemed to be University), Visakhapatnam, Andhra Pradesh,
India. He is an engineering graduate and completed MBA from National Institute of Technology, Warangal
and obtained his doctorate from the Department of Business Management, Osmania University and
qualified in UGC-NET conducted by University Grants Commission, New Delhi. He is a certified ZED
Master Trainer from Quality Council of India and National Monitoring & Implementation Unit (NMIU)
for the Zero Defect and Zero Effect (ZED) scheme of Ministry of Micro, Small and Medium Enterprise
(MSME). He has won the “Best Professor in Project Management” award by Business School Affaire & Dewang Mehta
National Education Awards. He is a life member in National HRD Network (NHRD), International Association of
Academicians & Researchers (INAAR) and editorial member in International Centre of Economics, Humanities and
Management (ICEHM). His area of interest includes Operations, Quality, Marketing Research, logistics, Supply Chain
Management and Project Management. He can be reached at [email protected]