{"id":25728,"date":"2023-07-31T14:38:41","date_gmt":"2023-07-31T14:38:41","guid":{"rendered":"https:\/\/www.goodacademic.com\/blog\/questions\/corporate-entrepreneurship-capability-model-cecm-a-case-study-on-corporate-entrepreneurial-venturing-and-implementation\/"},"modified":"2023-07-31T14:38:41","modified_gmt":"2023-07-31T14:38:41","slug":"corporate-entrepreneurship-capability-model-cecm-a-case-study-on-corporate-entrepreneurial-venturing-and-implementation","status":"publish","type":"questions","link":"https:\/\/www.goodacademic.com\/blog\/questions\/corporate-entrepreneurship-capability-model-cecm-a-case-study-on-corporate-entrepreneurial-venturing-and-implementation\/","title":{"rendered":"Corporate Entrepreneurship Capability Model (CECM): A Case Study on Corporate Entrepreneurial Venturing and Implementation"},"content":{"rendered":"
\n

 <\/span><\/p>\n

Corporate
\nentrepreneurship refers to an approach where opportunities are pursued through <\/span>implementation, and the primary means to
\nachieve this is through corporate venturing. Corporate <\/span>venturing encompasses the organizational systems,
\nprocesses, and practices that focus on creating <\/span>businesses in existing or new fields, markets, or
\nindustries. It leads to various outcomes such as creating new businesses,
\nseizing opportunities, establishing enterprises, and fostering innovation <\/span>(Shin and Cho, 2020). Corporate venturing
\nnot only enables the development of new capabilities and <\/span>innovative value but also maximizes the utilization of existing
\nassets and capabilities (Hill & Georgoulas).<\/span><\/span><\/p>\n

Successful corporate
\nentrepreneurs prioritize qualities of openness and curiosity towards new
\nexperiences rather than relying solely on brilliant ideas. These entrepreneurs
\ndemonstrate a proactive <\/span>attitude <\/span>and <\/span>behaviour, <\/span>enjoying
\n<\/span>risk-taking <\/span>opportunities. <\/span>They <\/span>also <\/span>aim <\/span>to <\/span>minimize
\n<\/span>risk <\/span>across <\/span>all <\/span>endeavours. The components of entrepreneurial
\norientation, as defined by Lumpkin and Dess (1996), encompass autonomy,
\ncompetitive aggressiveness, innovativeness, proactiveness, and risk-taking.<\/span><\/span><\/p>\n

Setiawan (2015) conducted a study assessing the
\nimplementation of corporate entrepreneurship
\nin privately-owned and state-owned contractors in Indonesia. The study
\nintroduced <\/span>the Corporate
\nEntrepreneurship Capability Model (CECM), consisting of two main components: <\/span>indicators <\/span>of <\/span>corporate <\/span>entrepreneurship <\/span>and <\/span>the <\/span>capability <\/span>levels <\/span>of <\/span>contractors <\/span>(Setiawan <\/span>and
\nErdogan, 2018). CECM utilizes twenty-one key factors, considered essential for
\ncorporate entrepreneurship are categorized
\ninto five dimensions: autonomy, competitive aggressiveness, <\/span>innovativeness, proactiveness, and risk-taking (Lumpkin
\nand Dess, 1996).<\/span><\/span><\/p>\n

1.   <\/span><\/span><\/span>Autonomy<\/span><\/span><\/h1>\n

Your corporation gives autonomy to the staff
\nindividually or in groups to do independent actions such<\/span> as
\naccessing<\/span> <\/span>information, communication<\/span> <\/span>both
\nhorizontally and<\/span> <\/span>vertically, proposing<\/span> <\/span>suggestions
\nfor <\/span>projects <\/span>and <\/span>the <\/span>company, <\/span>and <\/span>planning <\/span>and <\/span>managing <\/span>projects.<\/span><\/span><\/p>\n

2.   <\/span><\/span><\/span>Competitive<\/span> <\/span>aggressiveness<\/span><\/span><\/h1>\n

 <\/span><\/b><\/p>\n

The <\/span>new <\/span>entrepreneurial <\/span>team <\/span>do <\/span>several
\n<\/span>actions <\/span>to <\/span>outperform <\/span>the <\/span>competitors. <\/span>Nevertheless, <\/span>the team <\/span>members <\/span>need <\/span>to <\/span>maintain
\n<\/span>a <\/span>good <\/span>relationship <\/span>with <\/span>clients
\n<\/span>and <\/span>to <\/span>act <\/span>as <\/span>a <\/span>problem <\/span>solver
\n<\/span>for their <\/span>clients, <\/span>as <\/span>well <\/span>as <\/span>to <\/span>build <\/span>and <\/span>maintain
\n<\/span>clients\u2019 <\/span>confidence <\/span>in <\/span>trustworthiness <\/span>and reliability <\/span>of <\/span>the
\n<\/span>company.<\/span><\/p>\n

3.   <\/span><\/span><\/span>Innovativeness<\/span><\/span><\/h1>\n

 <\/span><\/b><\/p>\n

The <\/span>new <\/span>entrepreneurial <\/span>team <\/span>needs <\/span>to <\/span>be <\/span>actively
\n<\/span>generating <\/span>innovations <\/span>that <\/span>are <\/span>directed
\n<\/span>to <\/span>meet <\/span>new clients\u2019 demands and to build the projects efficiently and
\neffectively. In order to spur the innovations, <\/span>the <\/span>team <\/span>needs <\/span>to <\/span>carry <\/span>out <\/span>research
\n<\/span>and <\/span>development <\/span>activities, <\/span>programs <\/span>that <\/span>spark innovation <\/span>need <\/span>to <\/span>be <\/span>supported <\/span>and <\/span>the <\/span>staff
\n<\/span>needs <\/span>to <\/span>be <\/span>challenged <\/span>to <\/span>become <\/span>innovative.<\/span><\/span><\/p>\n

4.   <\/span><\/span><\/span>Proactiveness<\/span><\/span><\/h1>\n

 <\/span><\/b><\/p>\n

In
\nrunning the business, new entrepreneurial team is required to proactively seize
\nbusiness opportunities. <\/span>They <\/span>need <\/span>to<\/span>
\n<\/span>carry
\n<\/span>out <\/span>marketing <\/span>activities <\/span>and <\/span>look <\/span>ahead <\/span>for <\/span>future<\/span> demands.<\/span> <\/span>The<\/span><\/span><\/p>\n<\/div>\n



\n<\/span><\/p>\n

\n

team also need to expand their market into new
\nsegments and new areas. Business diversification is <\/span>another <\/span>proactive
\n<\/span>action <\/span>of <\/span>contractors <\/span>to <\/span>find <\/span>new <\/span>business <\/span>opportunities <\/span>and <\/span>to <\/span>expand
\n<\/span>their business.<\/span><\/span><\/p>\n

5.   <\/span><\/span><\/span>Risk<\/span> <\/span>taking<\/span><\/span><\/h1>\n

The<\/span> <\/span>entrepreneurial<\/span> <\/span>team<\/span> <\/span>needs<\/span> <\/span>to<\/span> <\/span>be<\/span> <\/span>risk<\/span> <\/span>takers.<\/span> <\/span>They<\/span> <\/span>need<\/span> <\/span>to<\/span> <\/span>take<\/span> <\/span>a<\/span> <\/span>bold<\/span> <\/span>action to<\/span> <\/span>accept<\/span> <\/span>projects <\/span>from new clients and to take projects
\nwith several risks such as financial risk, technical risk as well as <\/span>social
\n<\/span>risk. <\/span>They <\/span>also <\/span>need <\/span>to <\/span>be <\/span>a <\/span>risk <\/span>taker <\/span>to <\/span>introduce
\n<\/span>innovations.<\/span><\/span><\/p>\n

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

\u2022    
\n<\/span><\/span><\/span>Level <\/span>1: <\/span>INITIAL<\/span><\/span><\/span><\/h1>\n

The need of CE to support the success of your
\nbusiness is not realized by your corporation, therefore, <\/span>no policies, <\/span>no <\/span>formal <\/span>processes, <\/span>and <\/span>no structured <\/span>approaches <\/span>for the <\/span>implementation <\/span>of <\/span>CE <\/span>is <\/span>in
\n<\/span>place. The CE is implemented
\nonly because <\/span>of self-interest and
\nindividual efforts <\/span>of the people
\nworking in the company. Identify the expertise are needed to ensure the success
\nof CE. (Make assumptions if <\/span>your <\/span>company <\/span>is <\/span>small).<\/span><\/p>\n

\u2022    
\n<\/span><\/span><\/span>Level <\/span>2: <\/span>REPEATABLE<\/span><\/span><\/span><\/h1>\n

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

\u2022    
\n<\/span><\/span><\/span>Level <\/span>3: <\/span>MANAGED<\/span><\/span><\/span><\/h1>\n

The process for <\/span>implementing <\/span>CE has
\n<\/span>been defined, implemented, <\/span>and <\/span>controlled <\/span>consistently <\/span>because
\nthe need of CE to support the success of the new business has been realized.
\nTop management fully understands the benefit of CE to support the business
\nsuccess, therefore, the implementation of CE is <\/span>fully <\/span>supported.<\/span><\/p>\n

\u2022    
\n<\/span><\/span><\/span>Level <\/span>4: <\/span>OPTIMIZED<\/span><\/span><\/span><\/h1>\n

The <\/span>CE <\/span>has <\/span>been <\/span>fully <\/span>implemented <\/span>and <\/span>is <\/span>managed
\n<\/span>well. <\/span>The <\/span>process
\n<\/span>for <\/span>CE <\/span>implementation <\/span>has <\/span>been <\/span>standardized <\/span>and <\/span>is <\/span>continuously <\/span>evaluated. <\/span>Continuous <\/span>improvement <\/span>is <\/span>enabled <\/span>based
\n<\/span>on <\/span>the feedback from the implementation of the CE indicators. The contractors
\nhave gained the benefits from <\/span>the <\/span>implementation <\/span>of <\/span>CE.<\/span><\/p>\n

References<\/span><\/span><\/h1>\n

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

Setiawan,
\nH. (2015). Corporate entrepreneurship capability model for contractors
\n(Doctoral dissertation, <\/span>Heriot-Watt <\/span>University).<\/span><\/p>\n

Setiawan, <\/span>H., <\/span>& <\/span>Erdogan,
\n<\/span>B. <\/span>(2018, <\/span>August).
\n<\/span>Corporate <\/span>entrepreneurship <\/span>level: <\/span>a <\/span>case <\/span>study <\/span>of contractors
\nin Indonesia. In MATEC Web of Conferences (Vol. 195, p. 06013). EDP Sciences.<\/span><\/span><\/p>\n<\/div>\n



\n<\/span><\/p>\n

Narayanan, <\/span>V.; <\/span>Yang, <\/span>Y.; <\/span>Zahra, <\/span>S.A. <\/span>(2009). <\/span>Corporate
\n<\/span>venturing <\/span>and <\/span>value <\/span>creation: <\/span>A <\/span>review <\/span>and proposed <\/span>framework. <\/span>Res. <\/span>Policy,
\n<\/span>38, <\/span>58\u201376.<\/span><\/span><\/p>\n

Hill, S.A.;
\nGeorgoulas, S. Internal Corporate Venturing: A Review of Five-Decades of
\nLiterature; Handbook of <\/span>Research <\/span>on <\/span>Corporate
\nEntrepreneurship, Edward Elgar: Cheltenham, UK, 2016; pp. <\/span>13\u201363. <\/span>Available <\/span>online: https:\/\/www.elgaronline.com\/view\/edcoll\/9781785368721\/9781785368721.00007<\/span><\/a>. <\/span>xml.<\/span><\/span><\/p>\n

 <\/span><\/p>\n

Lumpkin, G.T.;
\nDess, G.G. (1996). Clarifying the entrepreneurial orientation construct and
\nlinking It to <\/span>performance. <\/span>Acad. <\/span>Manag. <\/span>Rev., <\/span>21, <\/span>135\u2013172.<\/span><\/span><\/p>\n

 <\/span><\/p>\n

 <\/span><\/p>\n

Questions<\/span><\/span><\/h1>\n

 <\/span><\/b><\/p>\n

1)        
\n<\/span><\/span><\/span>Assess
\nONE (1) <\/b>corporation that you
\nunderstand they possess the building block of corporate <\/span>venturing. <\/span>Support <\/span>your <\/span>answers
\n<\/span>with <\/span>cogent <\/span>evidence.
\n<\/span>(300 <\/span>words)<\/span><\/span><\/p>\n

(10 <\/span><\/span>marks)<\/span><\/span><\/p>\n

 <\/span><\/p>\n

2)        
\n<\/span><\/span><\/span>Using
\nthe five dimensions suggested by Lumpkin and Dess (1996) of autonomy,
\ncompetitive <\/span>aggressiveness, innovativeness,
\nproactiveness, and risk-taking, propose how these components <\/span>can <\/span>be <\/span>applied <\/span>to <\/span>your <\/span>internal
\n<\/span>corporate <\/span>entrepreneurship <\/span>(ICE).
\n<\/span>(500 <\/span>words)<\/span><\/span><\/p>\n

 <\/span><\/p>\n

(20 <\/span><\/span>marks)<\/span><\/span><\/p>\n

 <\/span><\/p>\n

3)        
\n<\/span><\/span><\/span>Linking
\nthe five dimensions (Lumpkin and Dess, 1996) and the four capability levels of
\nCECM, <\/span>describe <\/span>how <\/span>your <\/span>team <\/span>can <\/span>drive <\/span>the <\/span>innovation <\/span>for <\/span>your <\/span>corporation <\/span>in <\/span>creating <\/span>a <\/span>new
\nbusiness <\/span>and <\/span>seizing
\n<\/span>opportunities. <\/span>(500 <\/span>words).<\/span><\/span><\/p>\n

(30 <\/span><\/span>marks)<\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

  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 […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","template":"","meta":[],"disciplines":[1112],"paper_types":[],"tagged":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/questions\/25728"}],"collection":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/questions"}],"about":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/types\/questions"}],"author":[{"embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/comments?post=25728"}],"version-history":[{"count":0,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/questions\/25728\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/media?parent=25728"}],"wp:term":[{"taxonomy":"disciplines","embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/disciplines?post=25728"},{"taxonomy":"paper_types","embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/paper_types?post=25728"},{"taxonomy":"tagged","embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/tagged?post=25728"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}