The Role of Livelihood Assets in Affecting Community Adaptive Capacity in Facing Shocks in Karangrejo Village, Indonesia

This study addresses a theoretical gap by examining how multiple livelihood assets collectively enhance rural communities’ adaptive capacity and contribute to rural resilience theory. Using structural equation modeling, data were collected from June to August 2024 from 372 randomly selected househol...

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Main Authors: Gunawan Prayitno, Aidha Auliah, Achmad Efendi, Ainul Hayat, Aris Subagiyo, Aulia Putri Salsabila
Format: Article
Language:English
Published: MDPI AG 2025-01-01
Series:Economies
Subjects:
Online Access:https://www.mdpi.com/2227-7099/13/1/13
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author Gunawan Prayitno
Aidha Auliah
Achmad Efendi
Ainul Hayat
Aris Subagiyo
Aulia Putri Salsabila
author_facet Gunawan Prayitno
Aidha Auliah
Achmad Efendi
Ainul Hayat
Aris Subagiyo
Aulia Putri Salsabila
author_sort Gunawan Prayitno
collection DOAJ
description This study addresses a theoretical gap by examining how multiple livelihood assets collectively enhance rural communities’ adaptive capacity and contribute to rural resilience theory. Using structural equation modeling, data were collected from June to August 2024 from 372 randomly selected households in Karangrejo Village, Indonesia, to test whether livelihood assets significantly influence adaptive capacity in response to diverse economic, social, and environmental shocks. The findings reveal that human, natural, physical, and social capital show a strong, positive effect on adaptive capacity, whereas financial capital alone does not significantly enhance resilience. Despite the limited geographic scope, the results underscore that comprehensive asset combinations—rather than reliance on a single form of capital—strengthen a community’s capacity to withstand shocks. This integrated perspective suggests that balanced investments across multiple forms of capital foster sustainable and flexible adaptation strategies, enabling communities to navigate uncertainty and maintain stability. The study highlights the critical importance of diversifying livelihood assets to foster long-term rural resilience and improve quality of life, offering practical insights for policymakers, practitioners, and researchers in developing holistic interventions that support adaptive capacity.
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series Economies
spelling doaj-art-85205c4490054a749527e0b7b70804292025-01-24T13:30:01ZengMDPI AGEconomies2227-70992025-01-011311310.3390/economies13010013The Role of Livelihood Assets in Affecting Community Adaptive Capacity in Facing Shocks in Karangrejo Village, IndonesiaGunawan Prayitno0Aidha Auliah1Achmad Efendi2Ainul Hayat3Aris Subagiyo4Aulia Putri Salsabila5Department of Regional and Urban Planning, Faculty of Engineering, Universitas Brawijaya, Malang 65145, IndonesiaDepartment of Regional and Urban Planning, Faculty of Engineering, Universitas Brawijaya, Malang 65145, IndonesiaDepartment of Statistics, Faculty of Mathematics and Natural Sciences, Universitas Brawijaya, Malang 65145, IndonesiaFaculty of Administrative Sciences, Universitas Brawijaya, Malang 65145, IndonesiaDepartment of Regional and Urban Planning, Faculty of Engineering, Universitas Brawijaya, Malang 65145, IndonesiaDepartment of Regional and Urban Planning, Faculty of Engineering, Universitas Brawijaya, Malang 65145, IndonesiaThis study addresses a theoretical gap by examining how multiple livelihood assets collectively enhance rural communities’ adaptive capacity and contribute to rural resilience theory. Using structural equation modeling, data were collected from June to August 2024 from 372 randomly selected households in Karangrejo Village, Indonesia, to test whether livelihood assets significantly influence adaptive capacity in response to diverse economic, social, and environmental shocks. The findings reveal that human, natural, physical, and social capital show a strong, positive effect on adaptive capacity, whereas financial capital alone does not significantly enhance resilience. Despite the limited geographic scope, the results underscore that comprehensive asset combinations—rather than reliance on a single form of capital—strengthen a community’s capacity to withstand shocks. This integrated perspective suggests that balanced investments across multiple forms of capital foster sustainable and flexible adaptation strategies, enabling communities to navigate uncertainty and maintain stability. The study highlights the critical importance of diversifying livelihood assets to foster long-term rural resilience and improve quality of life, offering practical insights for policymakers, practitioners, and researchers in developing holistic interventions that support adaptive capacity.https://www.mdpi.com/2227-7099/13/1/13adaptive capacitylivelihood assetsrural resilienceKarangrejo VillageIndonesiashocks
spellingShingle Gunawan Prayitno
Aidha Auliah
Achmad Efendi
Ainul Hayat
Aris Subagiyo
Aulia Putri Salsabila
The Role of Livelihood Assets in Affecting Community Adaptive Capacity in Facing Shocks in Karangrejo Village, Indonesia
Economies
adaptive capacity
livelihood assets
rural resilience
Karangrejo Village
Indonesia
shocks
title The Role of Livelihood Assets in Affecting Community Adaptive Capacity in Facing Shocks in Karangrejo Village, Indonesia
title_full The Role of Livelihood Assets in Affecting Community Adaptive Capacity in Facing Shocks in Karangrejo Village, Indonesia
title_fullStr The Role of Livelihood Assets in Affecting Community Adaptive Capacity in Facing Shocks in Karangrejo Village, Indonesia
title_full_unstemmed The Role of Livelihood Assets in Affecting Community Adaptive Capacity in Facing Shocks in Karangrejo Village, Indonesia
title_short The Role of Livelihood Assets in Affecting Community Adaptive Capacity in Facing Shocks in Karangrejo Village, Indonesia
title_sort role of livelihood assets in affecting community adaptive capacity in facing shocks in karangrejo village indonesia
topic adaptive capacity
livelihood assets
rural resilience
Karangrejo Village
Indonesia
shocks
url https://www.mdpi.com/2227-7099/13/1/13
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