<![CDATA[Indonesian primary schools show uneven performance despite similar resources. This study contributes a cross-level resource-conversion model in which principal-perceived student engagement mediates the association between organizational capability and institutional performance, while principal-perceived learning motivation conditions that association. Survey data from 218 principals were analyzed with partial least squares structural equation modeling. Organizational capability was positively associated with engagement and performance, and engagement partially mediated the capability-performance relationship. Learning motivation showed a small, borderline negative interaction with capability, providing preliminary evidence consistent with resource substitution. The study therefore places the engagement-mediated pathway at the center of its contribution and treats motivation as a provisional boundary condition. Principals and district offices should diagnose student motivational conditions when designing capability-building interventions rather than assume uniform engagement returns.]]>
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