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Institutional theory has largely ignored the institutional diffusion across borders although it is a common phenomenon in this interconnected world. We examined the influence of the MNC on institutional diffusion in emerging markets. In a research setting of hiring the disabled in Korea, hypotheses were tested with a sample of 948 firms including 101 MNC subsidiaries. Results support the propositions that MNC subsidiaries from major advanced economies hire more disabled workers, and this tendency is diffused to subsidiaries from other countries in Korea. However, we failed to find the evidence that MNC subsidiaries exert isomorphic pressures to local players.

The Influence of Multinational Corporations on Institutional Diffusion in Emerging Markets: Evidence from Hiring the Disabled in Korea