After making the Original Posting; and, while playing a Game Session after making the Original Posting, I was thinking that the Faction Battle has something to do with Resources.
Specifically, the amount of Resources that a Faction receives from Faction Members.
This is similar to Making Donations to one's Alliance.
?How can I Donate More Resources to my Faction than the Daily Quest Amount?
One of my Colonies is maxed out on the Goods Resource; and, my other Colonies don't need any more; because, their Goods Resource expenditure is practically non-existent.