Abstract
The performance of fashion retail firms in Nairobi City County has declined in recent years despite the sector's significant contribution to employment, economic growth, and value chain development. Many firms continue to experience shrinking profit margins, intense competition, rapid technological changes, and difficulties adapting to evolving consumer preferences, raising concerns about their long-term competitiveness and sustainability. This study examined the effect of servant leadership and Technology adoption on the performance of fashion retail firms in Nairobi City County, Kenya. Specifically, the study sought to determine the effect of servant leadership and Technology adoption on firm performance. The study adopted a cross-sectional survey research design. The unit of analysis comprised 43 registered fashion retail firms in Nairobi City County, while the unit of observation consisted of management-level employees drawn from the selected firms. A target population of 258 management employees was identified, from which a sample of 157 respondents was determined using Yamane's sampling formula. Primary data were collected using a structured self-administered questionnaire and analyzed using the Statistical Package for the Social Sciences (SPSS). Descriptive statistics were used to summarize the data, while Pearson correlation and multiple regression analyses were employed to establish the relationships between the study variables. The findings revealed that servant leadership has a positive and statistically significant influence on the performance of fashion retail firms. The study also established that Technology adoption positively and significantly influence firm performance by enhancing organizational adaptability, operational efficiency, and competitive advantage. The study concludes that organizations that embrace servant leadership while continuously investing in innovation are more likely to achieve superior organizational performance. The study recommends that management should strengthen servant leadership practices through employee empowerment, ethical leadership, and participatory decision-making while simultaneously investing in continuous innovation, digital transformation, and product and process improvement to enhance organizational competitiveness and sustainable performance.
Keywords: Servant leadership, Technology adoption, organizational performance, fashion retail firms, strategic management, competitiveness, Nairobi City County, Kenya.