Mobile ad-hoc networks (MANETs) have attracted great research interest in recent years. Among many issues, lack of motivation for participating nodes to collaborate forms a major obstacle to the adoption of MANETs. Many contemporary collaboration enforcement techniques employ reputation mechanisms for nodes to avoid and penalize malicious participants. Reputation in- formation is propagated among participants and updated based on complicated trust relationships to thwart false accusation of benign nodes. The aforementioned strategy suffers from low scalability and is likely to be exploited by adversaries. In this paper, we propose a novel approach to address these problems. With the proposed technique, no reputation information is propagated in the network and malicious nodes cannot cause false penalty to benign hosts. Nodes classify their one-hop neighbors through direct observation and misbehaving nodes are penalized within their localities. Data packets are dynamically rerouted to circumvent selfish nodes. As a result, overall network performance is greatly enhanced. This approach significantly simplifies the collaboration enforcement process, incurs low overhead, and is robust against various malicious behaviors. Simulation results based on different system configurations indicate that the proposed technique can significantly improve network performance with very low communication cost.