Effect of Resilience Strategies On Business Continuity in The Hospitality Industry In Nairobi County, Kenya

Abstract

The modern business environment faces escalating risks such as cyber-attacks, IT failures, supply chain disruptions, and natural disasters. Digitalization and globalization have amplified these vulnerabilities, with the COVID-19 pandemic highlighting the critical need for organizational resilience. Despite this, many businesses lack robust continuity plans. This study examined the influence of resilience strategies on business continuity in Nairobi County’s five-star hotels. Grounded in Prospect Theory, Management Theory, and Organizational Learning Theory, it assessed financial, operational, and human resource resilience. Using a correlational research design, the study targeted 90 senior managers across 10 five-star hotels to evaluate resilience-driven continuity practices within Kenya’s hospitality sector.The sample included General Managers, Operations Managers, Human Resource Managers, Sales Managers, Finance Managers, Marketing Managers, ICT Managers, Production Managers, Procurement Managers, and Public Relations Managers. Purposive sampling was used to select participants with specific roles relevant to the research objectives. A census survey approach was adopted, given the manageable size of the population. To ensure the quality of the instruments, a pilot study was conducted in five randomly selected hotels in Nyeri County. Nine managers representing 10% of the sample size participated in the pilot, helping identify and correct weaknesses in the research tools. These participants were not included in the main study. In terms of reliability, internal consistency of the questionnaires was assessed using Cronbach’s Alpha, with coefficients of r ≥ 0.7 indicating acceptable reliability. For validity, expert opinions in the hospitality sector were used to examine the clarity and relevance of the questionnaire items. For qualitative instruments, specific techniques were documented for data collection, analysis, and interpretation to ensure replicability and trustworthiness. Primary data were collected via questionnaires, descriptive and inferential statistics, including multiple linear regression and paired t-tests was used. Diagnostic checks were performed to assess the assumptions of multiple linear regression and Pearson correlation, including checks for linearity, independence, homoscedasticity, and normality of residuals. Qualitative data were analyzed through content analysis. The study revealed a significant positive association between financial resilience and business continuity (r = 0.500, p = 0.01), indicating that stronger financial resilience contributed to improved business continuity. However, there was a non-significant relationship between operational resilience and business continuity (r = 0.250, p = 0.15), suggesting that operational resilience did not directly impact continuity. Additionally, the study found no significant association between human resource resilience and business continuity (r = 0.100, p = 0.35), implying that human resource resilience had a less direct effect on continuity in the hospitality sector. The study highlighted the crucial role of financial resilience in ensuring business continuity within Kenya's hospitality industry, emphasizing strategies like revenue diversification and emergency funding. However, it found no significant relationship between operational or human resource resilience and business continuity. The study recommended that hospitality organizations adopt a holistic approach to resilience, focusing on culture, leadership, and employee engagement, and suggested further research into other influencing factors.