Vacation As a Source of Competitive Advantage for Innovation

Jiayi Bao, Applied Economics, The Wharton School

Abstract: The management view of human capital as a source of sustained competitive advantage has driven research on how strategic human resource practices affect organizational performance. This project focuses on how a firm’s vacation policy can be a source of competitive advantage in entrepreneurial settings, particularly for innovation. Three types of vacation are examined: job-protected unpaid leave, paid vacation, and unlimited vacation policy. We study how firms may organize innovation activities through the choice of vacation strategies to better capture economic value from their human capital investments.

Michelle Eckert is Marketing and Communications Coordinator for the Mack Institute, where she works to engage students, researchers, and corporate partners in opportunities for collaboration. Michelle received her B.A. in Art from Valparaiso University in 2007. Her background includes two AmeriCorps terms of service working to teach mathematics, computer literacy, and job readiness skills to out-of-school youth in Philadelphia, focusing particularly on promoting access to post-secondary education.