Climate change pressures and environmental degradation have driven a paradigm shift from a linear to a circular economy. MSMEs, as a pillar of the Indonesian economy, have great potential in this transformation, but still face limitations in green human resource competence and technology adoption. This study analyses the influence of Green Human Capital (GHC) and Information Technology (IT) on the circular economy transformation of MSMEs, and examines the moderating role of IT in strengthening the GHC-transformation relationship from a Resource-Based View (RBV) perspective. A quantitative approach with explanatory research design was employed, with respondents drawn from MSME actors in East Java selected through purposive sampling. Data were analysed using Structural Equation Modelling-Partial Least Squares (SEM-PLS). The results confirm that GHC positively and significantly influences MSME circular economy transformation, that IT positively and significantly influences it, and that IT strengthens the effect of GHC on circular economy transformation. These findings confirm that the integration of green HR capability and digital infrastructure constitutes a major driver of MSME circular economy transformation, extending RBV toward dynamic capabilities theory. This study contributes to the RBV-based circular economy literature in developing-country MSME contexts, with practical implications for MSME actors and policymakers designing sustainability transformation strategies.
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