Abstract
In this paper the author derived short run and long run optimum growth paths from short run and long run growth frontiers using Data Envelopment Analysis (DEA) and investigated the contributing growth factors for all banks also banks segregated into different groups both in short run and long run perspective. The author's short run as well as long run findings strongly support the role knowledge capital as an important contributor to augment growth for all categories of banks. Knowledge capital forces the firms to adopt heterogeneous strategies results in heterogeneity in performance caused by barriers to imitation and inability of the firms to change the dynamic resource endowments quickly. On the contrary the finding supports the view that firm specific dynamic capabilities acquired through efficient knowledge management acts as a strategic variable for influencing performance of Indian commercial banks.
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