Corporate
entrepreneurship refers to an approach where opportunities are pursued through implementation, and the primary means to
achieve this is through corporate venturing. Corporate venturing encompasses the organizational systems,
processes, and practices that focus on creating businesses in existing or new fields, markets, or
industries. It leads to various outcomes such as creating new businesses,
seizing opportunities, establishing enterprises, and fostering innovation (Shin and Cho, 2020). Corporate venturing
not only enables the development of new capabilities and innovative value but also maximizes the utilization of existing
assets and capabilities (Hill & Georgoulas).

Successful corporate
entrepreneurs prioritize qualities of openness and curiosity towards new
experiences rather than relying solely on brilliant ideas. These entrepreneurs
demonstrate a proactive attitude and behaviour, enjoying
risk-taking opportunities. They also aim to minimize
risk across all endeavours. The components of entrepreneurial
orientation, as defined by Lumpkin and Dess (1996), encompass autonomy,
competitive aggressiveness, innovativeness, proactiveness, and risk-taking.

Setiawan (2015) conducted a study assessing the
implementation of corporate entrepreneurship
in privately-owned and state-owned contractors in Indonesia. The study
introduced the Corporate
Entrepreneurship Capability Model (CECM), consisting of two main components: indicators of corporate entrepreneurship and the capability levels of contractors (Setiawan and
Erdogan, 2018). CECM utilizes twenty-one key factors, considered essential for
corporate entrepreneurship are categorized
into five dimensions: autonomy, competitive aggressiveness, innovativeness, proactiveness, and risk-taking (Lumpkin
and Dess, 1996).

1.   Autonomy

Your corporation gives autonomy to the staff
individually or in groups to do independent actions such as
accessing information, communication both
horizontally and vertically, proposing suggestions
for projects and the company, and planning and managing projects.

2.   Competitive aggressiveness

The new entrepreneurial team do several
actions to outperform the competitors. Nevertheless, the team members need to maintain
a good relationship with clients
and to act as a problem solver
for their clients, as well as to build and maintain
clients’ confidence in trustworthiness and reliability of the
company.

3.   Innovativeness

The new entrepreneurial team needs to be actively
generating innovations that are directed
to meet new clients’ demands and to build the projects efficiently and
effectively. In order to spur the innovations, the team needs to carry out research
and development activities, programs that spark innovation need to be supported and the staff
needs to be challenged to become innovative.

4.   Proactiveness

In
running the business, new entrepreneurial team is required to proactively seize
business opportunities. They need to
carry
out marketing activities and look ahead for future demands. The

team also need to expand their market into new
segments and new areas. Business diversification is another proactive
action of contractors to find new business opportunities and to expand
their business.

5.   Risk taking

The entrepreneurial team needs to be risk takers. They need to take a bold action to accept projects from new clients and to take projects
with several risks such as financial risk, technical risk as well as social
risk. They also need to be a risk taker to introduce
innovations.

CECM categorizes the capability of contractors to implement CE into four levels. This decision also considers characteristics of
contractors and CE concept. The four capability levels in CECM are arranged in sequence from 1 to 4, from the lowest
level to the top level.
The four capability levels for CECM are defined as follows.

•    
Level 1: INITIAL

The need of CE to support the success of your
business is not realized by your corporation, therefore, no policies, no formal processes, and no structured approaches for the implementation of CE is in
place. The CE is implemented
only because of self-interest and
individual efforts of the people
working in the company. Identify the expertise are needed to ensure the success
of CE. (Make assumptions if your company is small).

•    
Level 2: REPEATABLE

Awareness of the importance of CE to support the success of new business has emerged, however, there is still a lack of a standardized
process for the implementation of CE. In order to achieve earlier success for similar implementations, the process of CE implementation is established and repeated.

•    
Level 3: MANAGED

The process for implementing CE has
been defined, implemented, and controlled consistently because
the need of CE to support the success of the new business has been realized.
Top management fully understands the benefit of CE to support the business
success, therefore, the implementation of CE is fully supported.

•    
Level 4: OPTIMIZED

The CE has been fully implemented and is managed
well. The process
for CE implementation has been standardized and is continuously evaluated. Continuous improvement is enabled based
on the feedback from the implementation of the CE indicators. The contractors
have gained the benefits from the implementation of CE.

References

Shin, B. Y., & Cho, K. T. (2020). The evolutionary model of corporate
entrepreneurship: a case study of samsung creative-lab. Sustainability, 12(21), 9042.

Setiawan,
H. (2015). Corporate entrepreneurship capability model for contractors
(Doctoral dissertation, Heriot-Watt University).

Setiawan, H., & Erdogan,
B. (2018, August).
Corporate entrepreneurship level: a case study of contractors
in Indonesia. In MATEC Web of Conferences (Vol. 195, p. 06013). EDP Sciences.