The role of relational resources in the knowledge management capability and innovation of professional service firms

Adopting a relational perspective, this article investigates whether organizational relationship-building routines and relational coordination influence organizational knowledge management capability and ultimately innovation in professional service firms (PSFs). Using data collected from 120 accounting firms in Ireland, support is found for an inter-mediation model where both relational coordination and knowledge management capability intervene in the relationship between relational routines and innovation. Thus, a linkage model is supported whereby relational routines facilitate relational coordination, which enhances knowledge management capability, leading to innovation. This article provides evidence of the importance of relational routines and relational coordination in promoting a firm’s knowledge management capability and in fostering innovation. Results highlight the value of relational resources in PSFs and suggest a novel and easy-to-implement approach for knowledge and innovation management.