Customer interaction in environmental innovation: the case of cloth diaper laundering

The aim of this paper is to illustrate the capability of a customer of a service business to act as a co-manufacturer. Thus, the customer becomes a key element in simultaneously improving environmental performance and competitiveness, in both the environmental dimension as well as in other dimensions. To this end, we have analyzed the case of the Dydee Company. In order to address the root of the environmental issues, certain procedures were used to change the customers’ habits. This option turned out to be much more efficient and less risky than its alternatives. The challenge laid in getting the customers, once informed, to be willing to modify such a personal and delicate task. The exchange rate at the time of writing this case analysis (9 September 1999) was 166 pesetas to the dollar, that is, approximately the current value of 1 euro.