Technology gaps in European banking: Put the blame on inputs or outputs?

This paper investigates the production efficiency of 12 European banking systems over the period 1997–2004, taking into account possible technology heterogeneity. Using a non-parametric metafrontier framework, efficiency and metatechnology ratio measures are computed and decomposed into input- and output-invariant components. Empirical findings indicate the existence of significant and rather increasing technology heterogeneity within European banking. A typology of the national banking systems is also developed, based on the overall productive performance with respect to the European technological edge, the absorptive capacity and the role of knowledge spillover effects. Decomposition results draw attention to catching up policies focusing on input and/or output scale adjustments.     

Are cooperatives the weakest link in European banking? A non-parametric metafrontier approach

This paper investigates the productive performance of cooperative banking firms as compared to their commercial and savings counterparts, accounting for technology heterogeneity due to different ownership in European banking. Based on the metafrontier notion, we introduce a methodology which allows the identification of technology gaps among different bank types and their decomposition into input- and output-invariant components. Our findings suggest that the type-specific frontier corresponding to cooperative banking firms lies, to its largest part, away from the European metafrontier. Furthermore, within the cooperative bank type a dichotomy seems to arise. The decomposition results suggest that the cooperatives’ technology gap is attributed to output production rather than input use.     

Inside the black box of high-growth firms in a crisis-hit economy: corporate strategy,employee human capital and R&D capabilities

In an attempt to open the black box of high-growth firms within turbulent economic environments, this paper explores the role of corporate strategy, employee human capital and R&D capabilities in achieving exceptional growth performance in a crisis-hit economy. Relative and absolute growth measures based on both employment and sales are computed utilizing survey data on 1500 firms in the midst of the Greek crisis. Our findings indicate that adopting a geographical diversification strategy significantly increases the likelihood of becoming a fast-growing firm, irrespective of the growth metric used. Entering in diverse product markets and taking advantage of R&D capabilities appear to additionally contribute to relative employment change in HGFs of smaller size. Based on the absolute employment growth indicator, we provide some evidence that HGFs of larger size are able to grow fast through product diversification, acquiring other firms or by investing on training low-skilled employees. Nevertheless, hiring already highly educated persons seems to matter only for sales HGFs, while research collaborations are found to negatively affect the probability of growing fast in terms of sales.