The Effect of Organizational Levers and the Mediating Role of Individual Absorptive Capacity in Information System Innovation

We develop a theoretical model that integrates the role of organizational levers and individual absorptive capacity (ACAP) in an attempt to better understand how the management can influence innovative behavior of employees. We propose that two organizational levers (i.e., Fairness of reward and job autonomy) strongly influence the utility of individual ACAP which in turn impacts employees´ innovation within information systems (IS) usage. Individual ACAP is manifested by the ability to identify new knowledge, assimilate and transform valuable knowledge, and apply assimilated knowledge. We find general support for our research model through a survey of 205 employees using SAP business intelligence system in China. Our findings provide academics and practitioners with an understanding of how management can inspire employees´ potential in IS innovation.