Recent advances in digital technologies have substantially transformed business processes, boosted productivity, and enhanced production capabilities across various industries. Similarly, the Agro-allied industries are leveraging these digital advances to optimize operations and increase agricultural yields. Despite growing global interest in the digital transformation of agriculture, particularly through innovative farming technologies, most empirical and theoretical studies have disproportionately focused on large-scale commercial farms in developed regions with robust technological Infrastructure. There is limited scholarly attention on how small and medium-sized agro-allied enterprises (SMEs) engage with, adopt, or benefit from advanced digital technologies. This study uses the diffusion of innovation DoI) theory to examine how institutional policy, technical, financial, Infrastructure, educational, and skill-related barriers impede the successful integration and deployment of current digital technologies in the SMEs, towards optimizing agro-allied yields in the agricultural industry. The study provided insight into how these constraints can be mitigated to enhance the successful implementation of advanced digital technologies by SMEs, thereby optimizing business processes and improving agro-allied yields. Using a quantitative research method, a survey questionnaire was designed and used to collect the opinions of over 400 individuals in various roles within agro-allied SMEs.A systematic review of existing literature provided additional insight into scholarly views and perspectives. Findings from the study indicated that Limited access to digital technology significantly hinders Smart Farming deployment, Educational skills training gaps influence the successful use of Smart Farming technologies and Government policies, infrastructure, and financial constraints collectively moderate Smart Farming adoption.