Journal of Theoretical and Applied Information Technology

15th March 2022. Vol.100. No 5

2022 Little Lion Scientific

ISSN: 1992-8645 www.jatit.org E-ISSN: 1817-3195

THE INFLUENCE OF MOBILE APPLICATION-BASED

LABORATORY INFORMATION MANAGEMENT SYSTEMS
ON CUSTOMER LOYALTY
HERDIANSYAH1, Ir. TOGAR ALAM NAPITUPULU, M.S., M.Sc., Ph.D 2
12
Information System Management Department, BINUS Graduate Program
Master of Information System Management, Bina Nusantara University
Jakarta, Indonesia
E-mail: [email protected], [email protected]

ABSTRACT

The trend of mobile application development is not only focused on the business to consumers (B2C) industry
dominated by mobile e-commerce applications. Still, it has also become a trend in the business-to-business
(B2B) industrial sector. Several studies show the significant influence of this mobile application on customer
loyalty. As a part of the business-to-business (B2B) industry, the third-party accredited laboratory services
have the challenge to maintain and manage customer loyalty in today's era of intense competition. Nowadays,
the Laboratory Information Management System (LIMS) function is not just testing operational tools from
the sample receiving to testing report. More than that, it must have the ability as a customer relationship
management tool. Therefore, one of the LIMS optimizations is providing a mobile application version. This
study aims to identify the influence of a mobile application-based Laboratory Management Information
System on customer loyalty as one of the accredited third-party testing laboratory solutions, primarily to
manage customer retention. The study shows that the variable information accessibility and customer
engagement of mobile application-based Laboratory Management Information System significantly affect
customer loyalty.
Keywords: Lims, Mobile Application, B2b, Customer Loyalty

1. INTRODUCTION signal of change. Various mobile applications have

been developed by the B2B industry, which
According [1], the mobile application as a digital generally provides comprehensive access to product
service channel for the industry in the B2B sector has information and ease of service. The mobile
increased. B2B market leaders have used mobile application was developed as a leading technology in
apps to increase customer engagement, reduce terms of customer relationship management (CRM),
purchase time, and increase customer loyalty. A where communication channels with customers are
survey [2] shows that 63% of IT decision-makers in integrated through mobile application media. The
the B2B sector indicate that the primary use of B2B features developed in the B2B mobile application are
mobile applications is customer loyalty. In addition, closely related to the overall needs of its customers,
based on research conducted by The Boston so the factors that affect customer satisfaction and
Consulting in collaboration with Google [1], mobile customer loyalty through the mobile application
applications in the B2B industry have moved and need to be further identified. The characteristics of
affected the revenues of these market leaders by an B2B customers are indeed very unique. Although
average of more than 40%. Therefore, the main B2C and B2B have something in common, there are
concern of the B2B industry in considering some important differences wherein B2B has longer
implementing mobile applications is customer business relationships, more complex services, and
satisfaction and loyalty. more often, and some customer decision-makers are
done in the procurement section. Given that
Shifting the business activity habits of
customer experience is personal, this is a significant
stakeholders, in this case, users in the B2B industry
challenge. In addition, decision-making in the
sector is almost similar to B2C, namely the shift of
context of B2B is less emotional than in B2C but
customer activity to a mobile device-based platform
relatively rational based on experience.
through mobile applications. This condition makes
the B2B industrial sector must quickly catch the

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15th March 2022. Vol.100. No 5
2022 Little Lion Scientific

ISSN: 1992-8645 www.jatit.org E-ISSN: 1817-3195

As a part of the business-to-business (B2B) market share of testing bisnis will become more
industry, the third-party accredited laboratory saturated and the competition more intense.
services have the challenge to maintain and manage
customer loyalty in today's era of intense 2.2 B2B mobile application trend
competition. For example, in Indonesia, based on
data from [1], there are 1500 accredited testing labs, According to the report [2] adoption of mobile
350 calibration labs, and 75 medical labs, which applications in the B2B sector began to surge in 2018
continue to increase every year. As a result, the and continues to show impressive growth with no
testing lab customers become fragmented and signs of slowing. In fact, the demand for B2B mobile
saturated. Therefore, every testing lab provider must applications is expected to push the market to $140
carry out various innovations to face the competition, billion by 2023. Some of the things that are driving
which is getting tougher. The utilization of the increasing trend of mobile applications in the
Laboratory Information Management System B2B sector stated by [3] are as follows:
(LIMS) in lab testing providers is not only a solution
a) Personalization drives sales and loyalty
of operational tools from the sample receiving to
testing report. More than that, it must have the ability b) B2C Experience
as a customer relationship management tool. One
c) Services are fully available 24 hours/7 days
solution for the testing lab to manage customer
relations and retention is to provide LIMS in the [3] It also suggests that businesses that don't
mobile application version. prioritize mobile apps miss out on real opportunities.
[4] explain that going forward, B2B companies see
This study aims to identify the influence of a
mobile application-based Laboratory Management digital interactions as two to three times more
Information System on customer loyalty as one of important to their customers than traditional sales
interactions. From some of the foundations of the
the accredited third-party testing laboratory
theory, it can be conclude that mobile applications in
solutions, primarily to manage customer retention.
corporate services in the B2B sector can improve
This research is a case study in one of the accredited
third-party laboratory service providers whose business performance and customer loyalty.
market segmentation is the business-to-business
(B2B) industry sector. As a testing service provider, 2.3 Laboratory Information Management
besides the reliability factors, credibility, and System (LIMS)
accuracy of test results, including competitive price
factors, another important aspect is customer According to [5] the Laboratory Management
management to build customer experience and Information System (LIMS) is included in one of the
engagement. software that serves to store and manage information
obtained during the testing process in the laboratory.
2. LITERATURE REVIEW The system controls and manages samples,
standards, test results, reports, laboratory staff, lab
2.1 Laboratory Testing Industry equipment, and laboratory workflow automation.
Integrating laboratory management information
The testing laboratory is one of the facilities of systems with other information systems can enable
conformity assessment that is very important in the the faster and real-time transfer of data from the
supply chain of a product and the examination, laboratory to the user. The task of the Laboratory
diagnosis, verification, and validation of a disease or Management Information System today is not only
human health. The existence of testing laboratories, the requirements of laboratory management but also
especially third-party testing laboratories, is process management, data security and data transfer
regulated and supervised by national and and it all becomes very important. [6]. Modern
international recognition agencies, in this case, LIMS consists of complex and interrelated computer
accreditation bodies, both government and private. programs and infrastructure that support a wide
The testing laboratory industry is an industry that has range of laboratory information processing needs.
been growing since the 18th century and is worth LIMS provides management reports and other data
billion dollars. As an example, according to data the laboratory needs to mobilery out its operations
from [3] by 2020, the food safety testing business and to support sustainable improvement and quality
reached US $ 17.4 billion and is predicted to increase initiatives [7]. Modern LIMS should also have built-
to US $ 25.8 billion by 2027. Nowadays, due to the in functionality for other necessary activities, such as
high increment of testing lab providers globally, the regulation, billing, or quality assurance [8].

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15th March 2022. Vol.100. No 5
2022 Little Lion Scientific

ISSN: 1992-8645 www.jatit.org E-ISSN: 1817-3195

2.4 Customer Loyalty

According to [9] loyalty is a certain attitude and

behavior. Loyalty is essential and reflects a
customer's positive response to buying back a
particular product or service [10]. The statement of
[6] reinforces that loyalty is defined as repeated
purchases, long-term commitments, intentions to
continue relationships, and the possibility of not
switching from other suppliers. Some modern
studies use a composite approach to understand B2B
customer loyalty. B2B customer loyalty is observed
as a combination of psychological attitudes, such as
similarity, satisfaction or repetitive buying behavior,
that can be measured in the number or frequency of
purchases. Figure 1. Three main factors that affect customer loyalty
[10]
[11] Introduce two approaches to defining and
measuring loyalty: 2.5 Customer Satisfaction
1. Loyalty based on behavior. Behavioral
loyalty can be expressed through A study by [11] revealed that customer
continuous, fixed and measurable satisfaction is the most dominant indicator and is
purchases with reference to customer positively correlated with customer loyalty. The
buying behavior. research of [12] shows that many authors in the
2. Loyalty based on attitude. Loyal context of different online services conclude the
customers are committed and have a strong satisfaction of using electronic media has a direct,
preference for a particular supplier, which significant, and positive impact on the loyalty of
means that loyalty attitude must be those media users.
measured by mapping out a customer's According to [6] customer satisfaction is the
buying beliefs, feelings and intentions. feeling of pleasure or disappointment of someone
who appears after comparing the performance
It’s important to understand what factors affect (results) of the product thought to the expected
customer loyalty and what factors must be performance, and according to [13] Satisfaction is an
considered in customer loyalty to last a long time. attitude that is decided based on the experience
According to [12], [13], [14] and [12] in [15] there gained. Thus, satisfaction is an assessment of the
are at least three main factors that affect customer characteristics or privileges of a product or service
loyalty as presented in figure 1 below, namely or the product itself, which provides a level of
Customer Relationship Management (CRM), consumer pleasure related to fulfilling consumer
Customer Satisfaction and Customer Experience. consumption needs.
Furthermore, Vilkaite-Vaitone and Skackauskiene
(2020) show that powerful factors that positively 2.6 Customer Relationship Management
affects on customer loyalty from the two service (CRM)
industries are service personalization, price, service
quality, and the attractiveness of service delivery In general, mobile applications developed by
environment, reputation, competitiveness, services B2B have a main function as a digital customer
culture, and economic well-being. relationship management (CRM) tool. CRM is the
strategic process of selecting the most profitable
customers to serve and shaping the interaction
between the company and that customer. The
ultimate goal is to optimize customer value for the
company in the present and future. [17]. [18] explain
at least 3 types of CRM based on its characteristics
as presented in Table 1.
Table 1. Types of CRM based on their
characteristics

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15th March 2022. Vol.100. No 5
2022 Little Lion Scientific

ISSN: 1992-8645 www.jatit.org E-ISSN: 1817-3195

CRM Type Dominan Characteristic No. Reseracher Dimension

2. [28]  Customer Services
Strategic Strategic CRM is a core
 Mobile Services
customer-centered business Optimation
 Reward Program
strategy that aims to win and
 Customization
retain profitable customers. 3. [29]  Pre-services Transaction
 During-services
Operational Operational CRM focuses on
Transaction
automating processes that relate  Post-services Transaction
4. [30]  Information quality
directly to customers, such as
 Ease of Navigation
sales, marketing, and customer  Customer Services
Efficiency
service.
Analytic CRM analytics is how
2.7 Engagement
organizations convert customer-
related data into actionable Customer engagement is a behavioral
manifestation of the brand or firm beyond
knowledge or information for
transactions [31]. According to [32] mobile apps are
both strategy and tactical becoming a go-to tactic for retailers because they
promise highly convenient digital engagement.
purposes.
Digital engagement refers to non-transactional
shopping activities available online, such as easy
Furthermore, [11] conclude that CRM is a core access to consumer reviews, online chat services,
business strategy that integrates internal processes and alternative products suggested by website
and functions and external networks to create and recommendations. Study conducted by [33] showed
deliver value to targeted customers to gain profits. It that customer engagement and brand trust positively
is based on high-quality customer-related data as influenced brand loyalty. Furthermore, a recent
well as being enabled by information technology. study by [37] on the influence of several digital
The use of information technology including mobile channel variables established under the Information
applications as one of the technologies used in CRM System Success Model and Technology Acceptance
is known as e-CRM. e-CRM basically, managing Model (TAM) on customer loyalty shows that only
customer relationships with electronic means [19]. engagement variables positively affect customer
According to [20] e-CRM is a business model of loyalty. This engagement variable consists of
relationship marketing centered on technology interactivity, simultaneity and direct contact.
strategies, which combines traditional CRM with
electronic market business applications. 2.8 Previous Research
The use of CRM or e-CRM is very important for
the industry because it is closely related to customer There has been no previous research
management in order to increase customer loyalty. specifically discussing the impact of the
Some research as done by [21], [22], [23], [24], [25], implementation of mobile application-based
and [26] CRM and e-CRM have a significant effect laboratory management information systems on
on service quality, customer satisfaction, and customer satisfaction and loyalty, impacting B2B
loyalty. The dimensions of CRM or e-CRM that customers. Some of the latest research that is
affect customer satisfaction and loyalty are relevant as a foundation of this research theory is
summarized from the following researchers: [35], which explains some of the theoretical and
managerial implications associated with the
Table 2. CRM/e-CRM Dimmension adoption of B2B mobile applications as well as
No. Reseracher Dimension research [36] examining Return on Engagement
1. [27]  Information Accessibility Initiatives (RoEI) on B2B mobile applications. In
 Services addition, a recent study by [37] on the influence of
 Security several digital channel variables established under
 Trust the Information System Success Model and

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15th March 2022. Vol.100. No 5
2022 Little Lion Scientific

ISSN: 1992-8645 www.jatit.org E-ISSN: 1817-3195

Technology Acceptance Model (TAM) on customer 3.2 Research Model

loyalty become a major reference of this study,
especially in defining variables and the main The research model on this study presented in
construct of the research model. As well as some Figure 2 below
theoretical foundations related to factors that affect
customer satisfaction and loyalty, researchers
adopted several research models related to the
influence of the application of digital channels,
including mobile applications and CRM or e-CRM,
on customer satisfaction and loyalty.

3. METHOD

3.1 Sample and Data Collection

This study was conducted through an analysis

of customer survey data from one of the B2B testing
service providers that will implement a mobile
application-based laboratory information Figure 2. Research Model
management system. The survey conducted in
November 2021 obtained 50 completed responses.
Table 3 presents the statistics about the respondent's The hypotheses proposed in this study are as
profile. follows:
Table 3. Information about the respondents  H1 - The influence of LIMS-based car
Age Frequency % applications affects customer satisfaction,
where:
20-29 years 22 44%
30-39 years 21 42% a. H1a: Information Accessibility
affects customer satisfaction
40-49 years 6 12%
> 50 years 1 2% b. H1b: Customer Services
influences customer satisfaction
Gender Frequency %
c. H1c: Attractiveness of Services
Man 25 50% Delivery influences customer
Women 25 50% satisfaction
d. H1d: Engagement influences
Job Level Frequency % customer satisfaction
Manager Level Up 12 24%
 H2 - The influence of LIMS-based mobile
Staff 38 76% applications affects customer loyalty, where:
a. H2a: Information accessibility affects
Industry Type Frequency % customer loyalty
Manufacturing/Production
42 84% b. H2b: Customer services affect customer
Trading (Export, Import, loyalty
Retailer) 7 14%
Services 1 2% c. H2c: Attractiveness of Services
Delivery affects customer loyalty
Services Experience Frequency % d. H2d: Engagement affects customer
> 3 years 32 64% loyalty
2-3 years 6 12%  H3 - Customer Satisfaction due to the
1-2 years 5 10% implementation of the Mobile Application-based
<1 year 7 14% Laboratory Management Information System
affects customer loyalty

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2022 Little Lion Scientific

ISSN: 1992-8645 www.jatit.org E-ISSN: 1817-3195

3.3 Measure item-to-construct loading was greater than that of

any other constructs, what could be inferred that the
Scale measure was adapted from the existing indicators are not interchangeable. Following
literature. The scale items were measured on a 5- Fornell–Larcker criterion, AVE is used to test
point Likert scale, ranging from 1 –“totally discriminant validity. The square root of the AVE
disagree” to 5 –“totally agree”. Structural equation was higher than the variable inter-correlations. A
modeling was assessed using partial least squares measurement instrument and related dataset are
(PLS) modeling (SmartPLS 3.0 software). considered to have acceptable discriminant validity
if the square-roots of the AVEs for each latent
4. DATA ANALYSIS & RESULT variable are higher than any of the correlations
between that latent variable and other latent
4.1 Measurement Model variables [35].

Construct validity and reliability were examined Tabel 5. Discriminant validity

by confirmatory factor analysis. Construct validity
was assessed by the examination of convergent ASD CE CL CS CSA IA
validity (threshold ≥ 0,7). If we refer to [34] ASD 0.921
convergent validity still accepted if loading factor ≥ CE 0.792 0.950
0.5. As displayed in Table 4, all indicators are CL 0.578 0.763 0.913
showing outer loading factor more than 7.
CS -0.467 -0.348 -0.178 0.911

CSA 0.815 0.855 0.692 -0.367 0.926

Table 4. Loading factor
IA 0.881 0.891 0.739 -0.376 0.840 0.884
ASD CE CL CS CSA IA

ASD_1 0.890 Construct reliability was assessed by the

ASD_2 0.950
evaluation of internal consistency. Internal
consistency was assessed using Cronbach’s alpha
ASD_3 0.928
(threshold: 0.70), composite reliability (CR,
ASD_4 0.913
threshold: 0.70) and average variance extracted
CE_1 0.959 (AVE, threshold: 0.50). According to construct
CE_2 0.946 validity and reliability result in Tabel 6, all variabel
CE_3 0.947 showing value ≥ 0.7 and according to AVE also have
CL_1 0.933
value ≥ 0.5. It mean all variable are reliable.
CL_2 0.940
Table 6. Construct Reliability & Validity
CL_3 0.864 Composit Average
CSA_1 0.888 Cronbach' rho_ e Variance
s Alpha A Reliabilit Extracted
CSA_2 0.955 y (AVE)
CSA_3 0.933 ASD 0.940 0.942 0.957 0.847
CS_1 0.903 CE 0.947 0.952 0.966 0.903
CS_2 0.940 CL 0.899 0.900 0.937 0.833
CS_3 0.889 CS 0.897 0.903 0.936 0.830
IA_1 0.902 CSA 0.916 0.921 0.947 0.857
IA_2 0.910 IA 0.953 0.957 0.962 0.781
IA_3 0.886
IA_4 0.866 4.2 Structural Model
IA_5 0.864
IA_6 0.895 Figure 3 presents the structural model results.
IA_7 0.864 According to significant path coefficients, the
summary of investigated hypothesis and result is
described in Table 7.
According to discriminat validity assessment, see
Tabel 5, all variable are comply with the criteria
discriminant validity. The results showed that each

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15th March 2022. Vol.100. No 5
2022 Little Lion Scientific

ISSN: 1992-8645 www.jatit.org E-ISSN: 1817-3195

The research has shown that variable information

accessibility of mobile application-based laboratory
information systems has no significant effect on
customer satisfaction but significantly affects
customer loyalty. This result is contrary with the
research of [37] when variable ease of use - which is
relevant with the variable information accessibility -
does not affect on customer loyalty but its effect on
engagement. However, research shows that variable
customer engagement significantly affects customer
satisfaction and loyalty. This result inline with
research conducted by [37], when customer
engagement positively affects to customer loyalty.
Interestingly, variable customer services and the
attractiveness of service delivery have no significant
effect on customer satisfaction and loyalty.
Figure 3. The Test Result Of The Research Model Furthermore, one big question needs to be identified
further: customer satisfaction has no significant
Table 7. Summary of investigated hypothesis and result effect on customer loyalty when most previous
research shows that customer satisfaction
Fulfilment of significantly affects customer loyalty.
Item Hypotheses P Value
hypotheses
H1a Information 0.346 not supported
accessibility has
positive effects on 5. DISCUSSION AND CONCLUSION
customer The current paper aimed to examine the
satisfaction influence of mobile application-based laboratory
H1b Customer services 0.495 not supported
has positive effects
information systems (lims) on customer loyalty
on customer testing. The research model was adapted from
satisfaction different relevant previous research. The suggested
H1c The attractiveness of 0.095 not supported model connects the characteristic of mobile
services delivery has
positive effects on
application-based lims and all features as indicators
customer of selected variables (information accessibility,
satisfaction customer services, attractiveness of services delivery,
H1d Customer 0.011 supported and engagement). The analysis showed interesting
engagement has
results; according to the validity and reliability test,
positive effects on
customer all indicators comply with the threshold. The result
satisfaction also showed that customer engagement with
H2a Information 0.025 supported indicators interactivity, simultaneity, and direct
accessibility has contact adapted from [37] significantly affects
positive effects on
customer loyalty customer satisfaction and loyalty, strengthening the
H2b Customer services 0.249 not supported prior research. However, the result shows contrary
has positive effects results with the relevant previous study [37],
on customer loyalty especially in the variable of information accessibility,
H2c The attractiveness of 0.057 not supported
services delivery has
which is similar to variable easy of use. From this
positive effects on research, information accessibility has a positive
customer loyalty effect on customer loyalty, whereas from the previous
H2d Customer 0.029 supported result is has no effect to customer loyalty. Finally, the
engagement has
positive effects on
result shows important information, in line with the
customer loyalty research question, that mobile app-based LIMS
H3 Customer 0.192 not supported influences customer loyalty, especially all related
satisfaction has features relevant to information accessibility and
positif effect on engagement. The findings of the research have
customer loyalty
certain managerial implications. It means
strengthening the mobile app-based LIMS with
information accessibility and customer engagement

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2022 Little Lion Scientific

ISSN: 1992-8645 www.jatit.org E-ISSN: 1817-3195

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