The Effect of Perceived Usefulness and Perceived Ease of Use on Affective Commitment and Actual Usage of the Flexible Benefit System: The Mediating Role of Individual Absorptive Capacity

Abstract

The purpose of this study is to understand the role of individual absorptive capacity after implementation of flexible benefit system by its users. We assume the effect of benefit that satisfy employees will increase their affective commitment with the firm. Technology Acceptance Model (TAM) were used to determine the factors that influence the actual usage of flexible benefit system. This is a quantitative study of 162 employees in a single banking industrial firm. Using questionnaires data and structural equation modelling (SEM), this research investigates how perceived usefulness and perceived ease of use affect the actual usage of flexible benefit system by introducing individual absorptive capacity as a mediator. The main finding is that individual absorptive capacity mediates between affective commitment and actual usage of flexible benefit system. And the study result showed that affective commitment has a positive effect toward absorptive capacity, also flexible benefit program influence employees' affective commitment with the firm.