Institutional Financial Management and Job Performance in State Universities: A Mediation Analysis of Job Satisfaction
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Abstract
Financial constraint among state universities is not a unique discussion as state becomes vulnerable to funding fluctuations. Cascading this uncertainty to its components affects how it operates toward attaining institutional mandates. However, fund fluctuation is beyond the control of state universities. The concern is on how these limited resources are managed to contribute to faculty performance in the key result areas, instruction, research, extension and professional development. Thus, the study examined how Institutional Financial Management (IFM) practices in state universities through the lens of faculty are translated to outcomes as evidenced by faculty Job Performance (JP) and the mediating role of faculty Job Satisfaction (JS). The study utilized a descriptive correlational approach to examine the direct effect of IFM on JP and JS, and JS on JP. Mediation analysis using Partial Least Squares Structural Equation Modelling (PLS - SEM) was utilized to analyze the mediation pathway. The data were collected from faculty across six (6) state universities in the Eastern Visayas Region Philippines. The findings revealed that IFM significantly affect JP and JS. While the mediation analysis revealed partial mediation. This highlights that IFM influences faculty JP both directly and indirectly through JS. Grounded from the findings, state universities shall improve IFM practices to effectively support faculty performance while strengthening measures to enhance JS. The proposed IFM framework such as digitalization of financial transactions may streamline processes to increase faculty JS, improve organizational climate, and enhance faculty JP which provides a strategic direction towards strengthened institutional productivity, and contribute to national development.
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