COLLABORATIVE INNOVATION AND CIRCULAR ECONOMY ADOPTION IN THE ECO-CREATIVE CRAFT SECTOR: THE MODERATING ROLE OF RESOURCE BOOSTRAPPING

Abstract

This study aims to examine the effect of Collaborative Innovation and Resource Bootstrapping on Circular
Economy Adoption among eco-creative craft entrepreneurs, as well as to investigate the moderating role of
Resource Bootstrapping in the relationship between Collaborative Innovation and Circular Economy Adoption.
This research employed an explanatory quantitative approach involving 100 respondents from the eco-creative
craft sector, including recycled crafts, natural-material-based products, sustainable fashion, environmentally
friendly decorations, and creative products developed through resource reuse. Data were collected using a
structured questionnaire with a five-point Likert scale and analyzed using Partial Least Squares Structural
Equation Modeling (PLS-SEM). The findings reveal that Collaborative Innovation has a positive and
significant effect on Circular Economy Adoption. Resource Bootstrapping also has a positive and significant
effect on Circular Economy Adoption. Furthermore, Resource Bootstrapping strengthens the positive
relationship between Collaborative Innovation and Circular Economy Adoption. These findings indicate that
circular economy adoption among eco-creative craft entrepreneurs is not only determined by their ability to
collaborate with external actors, but also by their ability to creatively optimize limited resources. This study
contributes theoretically by positioning Resource Bootstrapping as an internal capability that enhances the
effectiveness of Collaborative Innovation in promoting circular economy practices. Practically, the findings
highlight the importance of strengthening collaborative ecosystems, resourcefulness, and sustainability
oriented assistance programs for eco-creative craft entrepreneurs.