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This theory development paper argues that activity theory, as a theory of practice, can help overcome long-standing challenges in the field of information systems (IS) by better accounting for the material in work and social activity. It also suggests ways in which IS research can inform the development of activity theory. The purpose of this paper is to be forward looking as much as reflective to advance an enlarged understanding of activity theory, and argue for its development in IS studies.

The paper is conceptual and draws upon existing literature and research to propose and cultivate an updated understanding of activity theory as a theoretical lens capable of accounting for social and technical aspects in IS.

The paper has three aims. First, to cultivate the use of activity theory in IS. It elaborates on the use and contribution of activity theory in IS, charts it’s use over the last 20 years and discusses how it brings together a range of ideas that have been neglected in other social theories. Second, to explore the challenges surrounding the use of activity theory in understanding interaction between actors and technology. Third, to set an agenda for its advancement in IS, to ruminate upon future research concerning the extension of activity theory and develop a “fourth-generation” activity theory.

The paper presents the first attempt to juxtapose activity theory with other theoretical philosophical perspectives; to chart the use of activity theory in IS over the last 20 years; and, to discuss how activity theory brings together a range of ideas that have hitherto been excluded from – or inadequately formulated in – other contemporary social theories.

Information technology (IT) personnels’ technical, business and behavioral skills are critical enablers for generating IT value. In an increasingly digitalized working environment where non-IT employees participate in digital innovations, a focus on IT personnels’ skills only doesn’t meet researchers’ need for a framework to study digital skills and managers’ need to address digital skills challenges across an enterprise’s workforce. Nevertheless, the digital skills topic is complicated by conceptual ambiguity and a lack of theoretically derived and empirically validated model. The purpose of this study is to address this problem.

Theoretically, this study draws on human capital (HC) and resource-based view (RBV) theories. Empirically, it follows mixed method combining interviews and a survey.

The digital skills construct is a multidimensional second order reflective construct. While its development is influenced by an organization’s commitment and exposure to digitalization, it influences the value organizations obtain from digitalization.

This study conceptualizes the digital skills construct, identifying technology agnostic subdimensions that are meaningful beyond a particular digital domain [information and communication technology (ICT), information, Internet, Inter of Things (IoT)] and establishing a valid measure. Other researchers can improve both the indicators of the existing four conceptually distinct and managerially recognizable workplace digital skills dimensions as well as testing new ones.

Managers can use the instrument to assess the extent to which their non-IT workforces are equipped with digital skills and get strategic insights for specific interventions such as upskilling or buying in skills.

The main theoretical contribution of the paper is the conceptualization and validation of the digital skills construct for the non-IT workforce. Furthermore, we provide a theoretical framework to explain the factors that could influence the development of digital skills and demonstrate the impact that digital skills have on selected digitalization value indicators. This contribution provides the foundation for investigating the drivers, outcomes and the relationship of digital skills to other constructs such as digital transformation, innovation and firm performance.