Green, Innovative, and Profitable: A Case Study of Managerial Capabilities at Interface Inc.

Abstract

This article describes the pioneering green-innovation management practices of a resource-intensive corporation, Interface Inc., which is a globally operating carpet manufacturer. Even during the current economic downturn, many companies remain committed to advancing their green business agendas. However, recent research suggests that most of these companies are far from reaching substantial competitive advantage from this commitment because they lack the connection between their green agendas and core innovation-management activities. This study illustrates how Interface succeeded with radical green innovations by investing in managerial capabilities that allowed it to conduct research, recognize opportunities, and revolutionize the carpeting industry. These capabilities enabled Interface to continuously challenge and disrupt well-established management recipes, existing knowledge, and proven industrial practices, and they enabled it to create a sustainable competitive advantage through a winning portfolio of radical green innovations. Since 2003, we’ve sold over 83 million square yards of carpet with no net global warming effect. These climateneutral carpets, Cool Carpets, have been runaway bestsellers. That’s competitive advantage at its best – doing well by doing good.