Transaction cost economics suggests that going it alone is not a substitute for strategic alliances since they are best chosen only when other alternatives are not viable.

Question

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According to transaction cost economics, strategic alliances should only be formed when the transaction costs of doing so are lower than the costs of going it alone, and when other alternatives are not viable. Therefore, going it alone is not always a substitute for strategic alliances.

Transaction Cost Economics Suggests That Going It Alone Is Not