Methodology/approach: In-depth interviews were conducted with 26 participants from two organisations involved in an inter-organisational business relationship. From the interview material we identified what creates value in the inter-organisational business relationship and for the passengers of public transportation. All value drivers were categorised according to the central areas in a QMS.
Findings: The results show that internal processes and management responsibility are central areas where value is destroyed. Since service production has been outsourced; this means that the intended value is never experienced by the passenger.
Research limitations/implications: The value creators and destroyers identified originate from the suppliersâ€™ view and focus on how the different suppliers together create value for public transportation passengers.
Practical implications: Managers should acquire knowledge regarding the value they create or destroy and focus on improving the value creation process. The QMS can be used to assure and improve value creation in an inter-organisational business relationship.
Originality/value: Our research contributes to shedding light on the difficulties and possibilities in value creation where service production has been outsourced.
Keywords: Value creation; Quality Management Systems; Public transportation