Abstract

Behavioural interventions as well as Artificial Intelligence (AI)-enabled decision-support

systems are increasingly shaping executive decision-making within innovation contexts. A

growing number of studies on Nudge Theory, behavioural economics, and digital decision

architecture have been produced; however, many remain unsystematic and disproportionately

focus on operational/individual-level applications. Therefore, there is relatively little empirical

evidence to support how AI-enabled nudges affect the executive-level strategic decision-

making process regarding innovation investment decisions. Furthermore, the existing body of

literature fails to demonstrate any theoretical linkages between Nudge Theory, Construal

Theory, and Upper Echelons Theory. The results of this study highlight three specific areas

where there is a lack of empirical research within the literature: 1) there are very few empirical

studies investigating the use of AI-enabled nudges by Chief Executive Officers (CEOs) and at

the C-level; 2) there is a lack of theoretical relationships between Nudge Theory, Construal

Theory, and Upper Echelons Theory; and 3) core mechanisms for executive strategic decision-

making (i.e., uncertainty reduction, psychological distancing and bias mitigation) are not

adequately conceptualised or operationalised when investigating innovation decision-making.

The findings from the systematic literature review provided a systematised view of AI-enabled

nudges functions as decision-support architectures that instantiate executive cognition,

organisational processes and strategic evaluation at the executive level. This research sets out a

systematic future research agenda that defines key mechanisms, ethical issues and boundary

conditions to support future empirical investigations. Overall, findings provided through this

research show that AI-enhanced nudges offer a theoretical basis by which informed and

transparent innovation decisions can continue to be made at the executive level and therefore

support firms’ ability to be innovative over the long-term.

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