<p>Strategy distinctiveness, the extent to which a firm’s strategy differs from its competitors, is essential for superior performance. However, conceiving and pursuing unique strategies is challenging, and the outcomes highly uncertain. Recent research has established that large shareholders (ownership structure) with long-term investment horizons (ownership type) positively influence strategy distinctiveness. However, the influence of ownership form on strategy distinctiveness, whether private firms enable higher levels of strategy distinctiveness compared to publicly listed firms, has received limited empirical attention. Additionally, the performance implications of such strategies remain underexplored. We draw from related research on strategy distinctiveness and corporate governance to address this gap. We theorize that cognitive and institutional constraints on the pursuit of unique strategies are lower in private firms than in publicly listed firms. Accordingly, we hypothesize higher levels of strategy distinctiveness in private firms. The efficacy of distinctive strategies that deviate from industry norms are inherently uncertain and could potentially yield either substantial gains or losses. Thus, we posit that private firms are positively associated with performance extremeness, mediated by strategy distinctiveness. Our empirical analysis of a longitudinal sample of firms from India supports our hypotheses. Our study advances research on strategy distinctiveness and private firms.</p>