Influence of Budget Planning, Implementation, and HR Competence on Absorption with Organizational Commitment as Moderator

This study investigates the influence of budget planning, budget implementation, and human resource (HR) competence on budget absorption at BPJS Kesehatan branch offices in West Sumatra Province, Indonesia. It also explores the moderating role of organizational commitment in these relationships. Utilizing a quantitative approach, data were collected from 59 selected respondents through structured questionnaires and analyzed using Structural Equation Modeling (SEM) with SmartPLS 4.0. The findings reveal that budget planning (β = 0.311; p = 0.004), budget implementation (β = 0.133; p < 0.001), and HR competence (β = 0.549; p = 0.006) each have a significant positive effect on budget absorption. HR competence emerged as the most influential predictor. Organizational commitment positively moderates the effects of budget planning (β = 0.301; p = 0.016) and HR competence (β = 0.526; p < 0.001) on budget absorption. However, it negatively moderates the effect of budget implementation (β = -0.142; p = 0.001), suggesting that higher commitment may introduce procedural rigidity. The structural model demonstrated high explanatory power, with an R² of 0.911 for budget absorption, indicating that the model accounted for 91.1% of its variance. These results underscore the strategic importance of HR development and participatory planning processes, while also highlighting the complex role of organizational commitment in budget execution. This research offers practical implications for improving financial performance and policy execution in public service organizations