The mean dynamics in oscillatory channel flow is examined to investigate the dynamical mechanisms underlying the transition to turbulence in oscillatory wall-bounded flow. The analyses employ direct numerical simulation data acquired at three Stokes Reynolds numbers: $Re_{s}=648$, 801 and 1009, where the lower $Re_{s}$ flow is transitional over the entire cycle and the two higher $Re_{s}$ flows exhibit flow characteristics similar to steady turbulent wall-bounded flow during part of the cycle. The flow evolution over a half-period of oscillation for all three $Re_{s}$ is as follows: near-wall streamwise velocity streaks develop during the early accelerating portion of the cycle; then at some later point in the cycle that depends on $Re_{s}$, the near-wall streaks breakdown (demarking the onset of the nonlinear development stage), and the near-wall Reynolds stress grows explosively; the Reynolds stress remains elevated for part of the cycle before diminishing (yet remaining finite) during the late decelerating portion of the cycle. This process is then repeated indefinitely. The present findings demonstrate that transition to turbulence occurs when the nonlinear development stage begins during the accelerating portion of the cycle. This crucially leads to the diminishing importance of the centreline momentum source, the emergence of a locally accelerating/decelerating internal layer centred about the edge of the Stokes layer and the wall-normal rearrangement of the mean forces prior to the start of the decelerating portion of the cycle. The rearrangement of mean forces culminates in a four layer structure in the mean balance of forces. This is significant on a number of accounts since empirical and theoretical evidence suggests that the formation of a four layer structure is an important characteristic of a self-similar hierarchal structure that underlies logarithmic dependence of the mean velocity profile in steady turbulent wall-bounded flows (Klewicki et al., J. Fluid Mech., vol. 638, 2009, pp. 73–93). When the nonlinear development stage begins during the decelerating portion of the cycle (i.e. at $Re_{s}=648$), a four layer structure is not observed in the mean balance of forces and the flow remains weakly transitional over the entire cycle.