Determinants of Augmented Reality Adoption in Developing Economies: A Fuzzy Analytic Hierarchy Process Approach

Abstract

Augmented reality (AR) is a disruptive technology with enormous potential to accelerate digital transformation in developing economies. Although we have witnessed its rapid adoption in developed markets, AR adoption in developing countries is still at a nascent stage, constrained by infrastructural, socio-economic and cultural factors. The article uses the fuzzy analytic hierarchy process (F-AHP), a robust multi-criteria decision-making model, to identify and prioritize key factors influencing the adoption of AR in developing countries. Based on the expert evaluation, 12 main criteria and 44 sub-criteria were evaluated, including technological, psychological, economic, social and regulatory criteria. Findings indicate that the user’s attitude and technological attributes are the most significant, and the most significant sub-criteria are system reliability and productivity enhancement. Perceived costs, informativeness and vividness also play significant roles in user intention to adopt AR, but technical and user-centric risks are the main obstacles. Moreover, privacy, security and legal and regulatory risks pose long-term challenges that require sustainable adoption, but they have lower short-term impacts. The study contributes to consumer behaviour theory (CBT), as this theory provides a powerful framework that considers both cognitive and behavioural factors affecting AR adoption in emerging economies. It offers practical advice to policymakers, technology designers and industry advocates on strategies to emphasize cost reduction, promote local content development, enhance infrastructure and build trust to support the adoption of AR technology.