Influence of Contingency Recovery Plans on Survival of Horticultural Firms in Naivasha, Kenya

Abstract

Contingency recovery plan is to contain and minimizes the loss that may be realized by the organization in the future. Horticulture farming activities in Naivasha has been decreasing with many firms closing down their operations and others relocating to other countries such as Ethiopia. For instance, Karuturi flower farm became unsustainable in 2016 and shut down its operations. This is an indicator of an underlying concern, thus, the study sought to assess the influence of contingency recovery plans on survival of horticultural firms in Naivasha. The study was anchored on contingency theory. The study adopted a mixed research methodology. The researcher utilized a descriptive research design. The unit of observation was 195 respondents who included managers, supervisors and the staff. The study used primary and secondary data. Questionnaires were administered to supervisors and staff, while interview guides to the managers. Qualitative data was analyzed thematically while quantitative data using descriptive and inferential statistics. The study results showed that contingency recovery plans and firm survival is positively and significantly related (β=.452 p=0.000). The study concluded that recovery plans and firm survival is positively and significantly related. The study recommended that there is the need to have a disaster recovery team that are always ready for the recovery plans in the organization. Moreover, there is the need to have precautions developed in the organization to minimize the effects of a disaster. A written recovery plan that describes how the organization will respond when disaster or hardship strikes need to be drafted. It is recommended that there should be a time frame developed for the recovery plans in the organization. The communication system for the recovery plans in the organization needs to be effective to ensure smooth sharing of the information. Keywords: Contingency Recovery Plans, survival, horticultural firms, Naivasha, Kenya