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Purpose

The purpose of this paper is to explore the role of organisational capabilities (dynamic and operational) in the formation of value networks in the context of public transport services.

Design/methodology/approach

The theoretical argument is substantiated with qualitative data from four narratives on value network formations in the Swiss public transport system. These four narratives cover two types of new value networks: incremental improvements in established value networks; and radical leaps in emerging value networks.

Findings

These two types of new value networks entail the co‐evolution of different dynamic and operational capabilities.

Research limitations/implications

The study is limited by the qualitative research approach.

Practical implications

Public transport operators can utilise the findings on organisational capabilities to guide incremental improvements in their existing value network and/or radical leaps into an emerging value network.

Social implications

Governments should not only seek to increase transport capacity, but also aim to develop value networks to enhance public transport service experiences.

Originality/value

The paper applies value‐network thinking to public transport services. It offers a comprehensive framework to help organisations manage the formation of value networks. The results provide testable propositions that can be used to guide future research.

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