Multigroup analysis of ethnicities in Indonesia: the role of theory of planned behavior and religiosity in developing entrepreneurship intention

Purpose This study aims to analyze the influence of attitude, perceived behavioral control (PBC) and subjective norm on the entrepreneurial intentions of university students across different ethnic groups in Yogyakarta, with religiosity as a mediating variable. Design/methodology/approach A quantitative survey approach was used. The population covers all active higher education students in the Special Region of Yogyakarta, and a sample of 861 respondents was drawn from nine major ethnic groups (Banjar, Batak, Betawi, Bugis, Javanese, Madurese, Malay, Minangkabau and Sundanese) using purposive sampling (active students in at least their second semester who completed the questionnaire). Data were collected via an online questionnaire comprising demographic information and validated scales for each construct. Data were analyzed using partial least squares structural equation modeling (PLS-SEM) with SmartPLS 4 software. Findings The results indicate that attitude, PBC and subjective norm significantly affect entrepreneurial intention, both directly and indirectly through religiosity. The multigroup analysis reveals variations in the strength of these relationships across ethnic groups, with the mediating effect of religiosity being most pronounced among the Madurese, Sundanese and Bugis groups. These findings underscore the importance of considering religious values and ethnic background in developing inclusive, culturally contextualized entrepreneurship policies. Research limitations/implications The limitations of this study lie in its use of a quantitative approach with a cross-sectional design, which does not allow for capturing behavioral dynamics over time. In addition, data were collected exclusively from the Special Region of Yogyakarta, thereby limiting the generalizability of the findings to other regions in Indonesia. The reliance on self-reported questionnaires may also introduce potential biases, including social desirability bias and subjective perceptions from respondents. Originality/value The novelty of this study lies in integrating the religiosity dimension into the Theory of Planned Behavior (TPB) and applying a multigroup analysis based on ethnicity – an approach rarely explored in Indonesian entrepreneurship research. This framework provides practical insights for developing entrepreneurship curricula and shaping economic policies that reflect local social and cultural contexts. The study contributes to TPB-based literature on entrepreneurial intention by adding religiosity as a mediator and advances the discourse on the importance of multicultural and multigroup perspectives in understanding behavioral differences across ethnic and social groups.