CAN QUALITY STANDARDS INDIRECTLY IMPROVE EMPLOYEE'S WAGE: EMPIRICAL EVIDENCES FROM MONTENEGRO

In this paper we investigate the indirect effect of ISO 9000 adoption on employees' wage. Actually, the adoption of quality standards induces firm's re-organization, underlying improvement of work environment and employees' involvement. Therefore, in this paper, we analyze how work environment and employees' involvement are associated with employees' wage. Our empirical results based on Montenegrin employee database from two quality certified firms indicate that better work environment has no influence on employees' wage while employee involvement is positively associated with higher wages.