In general,firms will prefer to go it alone rather than enter into a strategic alliance when the level of transaction-specific investment required to complete an exchange is low.

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This is because when the level of transaction-specific investment required to complete an exchange is low, it is less risky for firms to undertake the investment themselves rather than collaborating with another firm. In this case, forming a strategic alliance would not provide any added benefits or cost savings compared to carrying out the investment independently.

In General,firms Will Prefer to Go It Alone Rather Than