Cross-border acquisitions by firms from emerging economies have risen sharply in the present millennium and have targeted both developed and developing markets. Yet, it is not clear what structures and approaches are adopted by these acquiring firms in order to govern their foreign subsidiaries. In this paper, I propose that the firms from the emerging economies operate with weaker positions of bargaining power in international markets owing to their greater liabilities of origin, newness and foreignness. Hence, in order to accomplish their strategic objectives, the firms from the emerging economies adopt nonconventional approaches in the governance of their foreign subsidiaries. These firms are more likely to opt for a wholly owned subsidiary when the intent is to seek new markets and share ownership when the intent is to acquire strategic-assets. However, superior performance of the acquiring firm in its home market can enhance its bargaining power and moderate ownership decisions. My predictions find support in a sample of 979 cross-border acquisitions by Indian firms, over the period 2000-2010. (C) 2015 Elsevier Ltd. All rights reserved.