1. The COVID-19 pandemic has led to an increase in the use of the internet by micro, small, and medium enterprises (MSMEs) globally as a coping strategy to survive the economic downturn.
2. A study conducted in Indonesia found that more intensive use of the internet by female entrepreneurs is positively associated with a higher probability of internet use by their household members for school-related purposes.
3. The diffusion of the internet as an innovative technology from MSE entrepreneurs to their household members occurs at the intensive rather than the extensive margin, and this result is best understood within the context of the COVID-19 pandemic.
The article "Internet usage among women‐led micro and small enterprises and household membersʼ use of the internet at home: Evidence from Indonesia during the COVID‐19 pandemic" provides an insightful analysis of the impact of internet adoption by women-led micro and small enterprises (MSEs) on their households' welfare in Indonesia during the COVID-19 pandemic. The study finds that more intensive use of the internet by female entrepreneurs is positively associated with a higher probability of internet use by their household members for school-related purposes. However, there is no evidence that household members of female entrepreneurs who adopt the internet for work use it for more diverse purposes.
The article's strengths lie in its empirical approach, using longitudinal data from MSEs in Indonesia in a two-way fixed-effect panel model and controlling for relevant variables. The study fills a gap in the literature on the nexus of internet use in business and the welfare of households engaged in the activity. The authors also provide qualitative analysis to explain their findings, highlighting possible mechanisms behind them.
However, there are some potential biases and missing points of consideration that need to be addressed. Firstly, while the study focuses on women-led MSEs, it does not explore whether male-led MSEs have similar impacts on their households' welfare. Secondly, while the study finds a positive association between intensive internet use by female entrepreneurs and their household members' school-related internet use, it does not consider other factors that may influence this relationship, such as income levels or education levels. Thirdly, while anecdotal evidence suggests that female entrepreneurs who use the internet more intensively are considered more effective in persuading their household members to accept its use for purposes related to their domain of responsibilities, such as children's education, this claim needs further empirical support.
In conclusion, while this article provides valuable insights into how internet adoption by women-led MSEs can improve their households' welfare during the COVID-19 pandemic in Indonesia, there are potential biases and missing points of consideration that need to be addressed. Further research is needed to explore the impact of internet adoption by male-led MSEs on their households' welfare and to consider other factors that may influence the relationship between intensive internet use by female entrepreneurs and their household members' school-related internet use.