A capability perspective at the formation of value networks in public transit services

Purpose of this paper
This paper explores the role of dynamic and operational capabilities in the formation of value networks in the context of public transit services.

Design/methodology/approach
The theoretical argumentation is substantiated by qualitative data on the formation of four value networks in the Swiss public transportation system.

Findings
There are two different types of intentional value-network formations in the public transit sector: (1) incremental improvement in established value networks, and (2) radical leaps in emerging value networks. Both value-network formations entail differences in the coevolvement of dynamic and operational capabilities. Sensing as a new business opportunity and as a dynamic capability is evident across various network actors for incremental improvement. For radical leaps, sensing is restricted to one central network actor.

Research limitations/implications
Research limitations are mainly due to the nature of the qualitative research approach.

Practical implications
The public transport operators could use the described organizational capabilities as guidance for either improving incrementally their existing value network or radically leaping into an emerging value network.

Social implications
Public transit supports environmental sustainability. However, governments should not only seek to increase transport capacity. Instead, they should think more about value networks for providing transportation experiences.

Originality/value
This study applies value-network thinking to public transit services. It offers a comprehensive framework to help organizations manage the value-network formation process. The results provide testable propositions, which are able to guide future research activities.