ABSTRACT
Private schools with limited reserves, dependence on tuition income, and enrollment uncertainty may face difficulty sustaining operations during financial pressure. This study examined whether Operational Efficiency mediates the relationship between Resource Utilization and Financial Stability among active member schools of the Cavite Province Association of Private Schools (CPAPS). A quantitative, non-experimental, causal-explanatory design was used with 82 valid respondents selected through purposive sampling from an accessible population of 186 active CPAPS-member schools. A researcher-developed questionnaire was validated through exploratory factor analysis, reliability analysis, and confirmatory factor analysis. Covariance-based structural equation modeling and bootstrap mediation analysis were conducted using IBM SPSS AMOS. The final measurement model retained five factors: Resource Utilization, Process Optimization and Productivity, Cost Efficiency, Liquidity and Sustainability, and Profitability. Resource Utilization was positively associated with Process Optimization and Productivity (β = 0.5510, p = .0001), Cost Efficiency (β = 0.5868, p = .0001), Profitability, and Liquidity and Sustainability across the specified structural models. Only Process Optimization and Productivity had a significant direct relationship with Liquidity and Sustainability (β = 0.3959, p = .0228); the other Operational Efficiency paths to Financial Stability were not statistically significant. Mediation was supported only for the pathway from Resource Utilization through Process Optimization and Productivity to Liquidity and Sustainability (β = 0.1282, 95% CI [0.0357, 0.4366]). The findings indicate a selective, context-bound mediating relationship rather than a universal effect. They support prioritizing process improvement and productivity monitoring while interpreting the results as statistical associations, not proof of causality.
Keywords: Resource Utilization; Operational Efficiency; Financial Stability; Covariance-Based Structural Equation Modeling; Private Schools; Cavite Province
DOI https://zenodo.org/records/22185569
