The European Union (EU) and Greece's international creditors have been exerting much pressure to move forward with reforms in the public sector and the associated SOEs, since the mid-nineties (Papazoglou, 2010; Mylonas and Joumard, 1999). Reforms in SOEs can improve productivity in important sectors of the economy and lower state costs. Whittaker (1947) considered productivity to be one of the most important organisational metrics (it is computed by dividing average output per period, by the total costs incurred, or resources, such as capital, energy, material, personnel, consumed in that period). Mylonas and Joumard (1999) have attributed the traditionally poor economic performance of Greek SOEs to the existence of: (a) high labour costs; (b) low productivity; (c) obsolete technology; (d) intense intervention by political parties providing favouritism; (e) poor management; and (f) large public service commitments without adequate financial compensation. Typically, public service commitments of Greek SOEs refer to the provision of services that are not economically viable, but are needed for the welfare of the society. As a result, the quality of service from Greek SOEs is generally viewed as unsatisfactory.
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