<![CDATA[Micro, Small, and Medium Enterprises (MSMEs) in rural contexts face significant barriers to adopting circular economy (CE) practices, yet existing studies focus predominantly on technical and policy dimensions while overlooking socio-relational mechanisms. This study introduces and empirically examines socio-economic bonding—defined as community economic interactions grounded in honesty, mutual respect, trust, and solidarity—as a critical enabler of CE integration among rural MSMEs. Method: A mixed-methods quasi-experimental design with participatory action research was employed, involving 25 MSME actors in Mojokerto, Indonesia, through a three-phase intervention (capacity building, circular innovation, institutional support). Data were collected using pretest-posttest assessments, observations, focus group discussions, and in-depth interviews. Results: Socio-economic bonding significantly facilitated CE adoption, increasing CE literacy by 85% (p<0.001, Cohen's d=3.21), achieving 68% adoption of circular practices, reducing waste generation by 30-40%, and generating additional monthly income of IDR 500,000-1,500,000. Trust in collective action showed the strongest correlation with CE adoption (r=0.71, p<0.001). From an Islamic perspective, socio-economic bonding aligns with 'an taradin (mutual consent), maslahah (public interest), and prohibition of israf (excessive consumption). Implications: The proposed community-based green transformation model offers a replicable framework where socio-economic bonding serves as the transversal mechanism bridging capacity building, innovation, and institutional support for CE adoption in resource-constrained rural settings. Keywords: Socio-economic Bonding; Circular Economy; MSMEs; Green Transformation; Sustainable Economic Resilience.]]>
Copyrights © 2026
