Product innovation and process innovation: differentiated organizational outcomes in brick-making companies in the Global South

Purpose The purpose of this paper is to determine how product and process innovation influence profits, productivity and the expansion of goods or services in brick-making companies in the Global South. Design/methodology/approach This study adopts a quantitative approach with a descriptive-explanatory scope. The DANE’s Survey on Technological Development and Innovation (EDIT) was administered to 53 companies in the Colombian brick-making sector, including 29 family-owned and 24 non-family-owned firms. Three binomial logistic regression models were used to analyze the effects of product and process innovation on productivity, profits and the expansion of the range of goods and services. Findings The results show that product innovation is positively associated with productivity and the expansion of the range of goods and services. No statistically significant effects on profits were found, and family ownership was not significantly associated with the organizational outcomes analyzed. Practical implications The results suggest that firms should align their innovation strategies with expected organizational outcomes, prioritize product innovation to improve productivity and diversify their offerings and strengthen organizational capabilities to transform innovative efforts into sustainable competitive advantages. Originality/value This study provides contextual empirical evidence on innovation in a traditional manufacturing sector in the Global South, showing that product innovation is associated with productivity and the expansion of the range of goods and services, while family ownership was not significantly associated with the organizational outcomes analyzed.