INFLUENCE OF CONTINGENCY IDENTIFICATION ON SURVIVAL OF HORTICULTURAL FIRMS IN NAIVASHA, KENYA
Abstract
Purpose of the study: The purpose of the study was to examine the influence of contingency identification on survival of horticultural firms in Naivasha, Kenya.
Research problem: 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. Besides, Oserian Ltd made a loss of Ksh.137 million in 2017 and further, the loss increased to 192 in 2018, which led to the firing of more than 400 employees to reduce the cost of production.
Research methodology: 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. Qualitative data was analyzed thematically while quantitative data was done using descriptive and inferential statistics (correlation and regression).
Findings: The correlation results showed that contingency identification is positively and significantly associated with survival (r=.652, p=.000). The regression results showed that contingency identification is positively and significantly related to firm survival (β=.364 p=0.000).
Conclusion: The study concluded that contingency identification is positively and significantly related to firm survival. It was found a unitary improvement in contingency identification leads to an increase in survival of the horticultural firm by 0.364 units when other factors are held constant.
Recommendations: The study recommended that there should be the development of contingency planning policy statements and be done regularly with extensive consultation. The horticultural firms need to identify preventive controls and protection systems to be used in case of an emergency. The management should educate its employees on the principles of operation to be adhered to when there is a need for an alternative course of action. The management within the horticultural firms needs to involve other employees in the development of contingency planning strategies. Moreover, horticultural firms need to best forecast future risks by analyzing previous and current occurrences affecting the firm.
Keywords: Contingency identification, survival, horticultural firms, Naivasha, Kenya
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