Networking quality and trust in professional services

Abstract

This study attempts to offer an outward-looking insight of the extent the knowledge management and value creation developed within professional organizations that is perceived to be able to influence networking behaviors and organizational performance. By using the Structural Equation Model (SEM) with AMOS, and conducting survey with non-probability sampling techniques of 300 law firms in several cities in Indonesia, the study proposed the networking capability as the mediating variable of the relationship between relational capability and marketing performance. The findings showed that the firms being capable of providing specific services according to the needs of customers and building closeness through business networking are more likely to improve the marketing performance. This study offers the original application of the concept of networking capability and relational capability in professional service-based firms.