Incheon International Airport’s Shared Growth Strategy in the Advance to Global Airport Business

Abstract

This paper examines the strategic trajectory charted by Incheon International Airport (IIA) in the turbulent environment of global airport management, with particular focus on IIA’s “Shared Growth Strategy.” In shared growth, IIA has committed to a principled and purposeful engagement with small and medium enterprises (SMEs) as it expands its business activities globally, en route to becoming a global airport management company (GAMC). The paper examines IIA’s growth potential both as a regional hub and a GAMC given the industry environment and IIA’s internal competencies. We further explore through cross-sectional SWOT analysis the appropriate programs for a successful shared growth strategy, and analyze IIA’s recent shared growth projects and activities with SMEs. Specifically, this research focuses on technology co-development and benefits sharing, and the procurement and marketing of SME products. By partnering with SMEs, IIA can create a “value slipstream” in order to accelerate its own growth, while reducing the “foreign liability” of partner firms, in the highly competitive market of airport construction, operation, and ownership. This approach can provide a benchmark case for other publicly owned companies with their sights on global markets, providing insight in how to expand operations abroad while satisfying government-driven shared growth demands at home.