Reasons for the Failure of the Plant Factory Industry

This study aims to explore the reasons for the failure of plant factory operations.Through a literature review, it was found that the reasons for failure include high initial investment and operating & maintenance costs, energy consumption, high technical management requirements, unclear product market positioning and insufficient competitiveness, production efficiency and economies of scale issues, challenges in disease and pest control and plant residues, rising labor costs, and consumer acceptance issues.This study conducted qualitative interviews with experts and scholars in the field of plant factories from the United States, Taiwan, China, and Japan.The results of the study revealed that the reasons for the failure of plant factories include investment and operating costs that are too high, insufficient agricultural knowledge about plant factories, inadequate crop marketing capabilities and low consumer acceptance, lack of sales channels for crops, and limited ability of plant factories to integrate various units and train relevant personnel.

Authors

Publication Details

Journal
International Journal of Academic Research in Business and Social Sciences
Published
2024-12-21
DOI
https://doi.org/10.6007/ijarbss/v14-i12/23564
Citations
2
Primary Topic
Management Theory and Practice
Type
article
Field-Weighted Citation Impact
1.35
Controls
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article

Reasons for the Failure of the Plant Factory Industry

Tzong-Ru Lee, Yong-Shun Lin
2 citations
International Journal of Academic Research in Business and Social Sciences
Management Theory and Practice
1.35
article

Reasons for the Failure of the Plant Factory Industry

Tzong-Ru Lee, Yong-Shun Lin
article en
2 citations

Abstract

This study aims to explore the reasons for the failure of plant factory operations.Through a literature review, it was found that the reasons for failure include high initial investment and operating & maintenance costs, energy consumption, high technical management requirements, unclear product market positioning and insufficient competitiveness, production efficiency and economies of scale issues, challenges in disease and pest control and plant residues, rising labor costs, and consumer acceptance issues.This study conducted qualitative interviews with experts and scholars in the field of plant factories from the United States, Taiwan, China, and Japan.The results of the study revealed that the reasons for the failure of plant factories include investment and operating costs that are too high, insufficient agricultural knowledge about plant factories, inadequate crop marketing capabilities and low consumer acceptance, lack of sales channels for crops, and limited ability of plant factories to integrate various units and train relevant personnel.

International Journal of Academic Research in Business and Social SciencesVol. 14(12)
Openalex Percentile: Top 14%
Management Theory and Practice
1.35
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