ON THE NEXUS OF ORGANIZATIONS AND PROFESSIONS - NETWORKING THROUGH TRUST

This paper examines new dimensions of professional-organizational rela tions through the concept of trust. It develops the argument that trus t exists among similar professionals because of many common denominato rs that lubricate their intra- and interorganizational collaborations. Therefore, professionals have the ability to conduct efficient transa ctions that reduce the need for formal monitoring systems and costly c ontractual agreements. These efficiencies in turn contribute to organi zational goals of efficiency, flexibility, and legitimacy because they reduce organizational costs, increase organizational learning, allow for faster organizational adjustment to environmental changes, and acc ommodate professionals' desire for sovereignty. Concomitantly, profess ionals impose their own needs for autonomy on organizations. Consequen tly, professionals both impel the creation of new organizational forms , and contribute to the efficiency of these forms. In particular, thre e such forms-fiat structures, hypertext organizations, and network for ms-are facilitated and engendered by professionals.