As global demand for animal products is projected to increase significantly by 2050, driven by population growth and increased incomes, smart livestock technologies are essential for improving efficiency, animal welfare, and environmental sustainability. Conducted within the unique agricultural context of Japan, characterized by small-scale, family-run farms and strong government protection policies, our study builds upon traditional theoretical frameworks that often oversimplify farmers' decision-making processes. By employing a scoping review, expert interviews, and a Modified Grounded Theory Approach, our research uncovers the intricate interplay between individual farmer values, farm management policies, social relations, agricultural policies, and livestock industry trends. We particularly highlight the unique dynamics within family-owned businesses, noting the tension between an "advanced management mindset" and "conservatism." Our study reveals that technology adoption is a sequential and iterative process, influenced by technology availability, farmers' digital literacy, technology implementation support, and observable technology impacts on animal health and productivity. These insights highlight the need for tailored support mechanisms and policies to enhance technology uptake, thereby promoting sustainable and efficient livestock production system.