Int. Journal of Economics and Management 3(2): 297 – 316 (2009) ISSN 1823 - 836X Linking CRM Strategy, Customer Performance Measures and Performance in the Hotel Industry NOR AZIAH ABU KASIM a* AND BADRIYAH MINAI b a Graduate School of Management, Universiti Putra Malaysia b Faculty of Economics and management, Universiti Putra Malaysia AbStRACt Customer relationship management (CRM) has been increasingly adopted because of its beneits of greater customer satisfaction and loyalty, which in turn, leads to enhanced inancial and competitive performance. This paper reports on a study that examines the relationship between CRM strategy and performance and determines whether the use of customer performance measures plays a mediating role in the relationship between CRM strategy and performance. This study contributes to the limited literature on CRM strategy since little is known about the use of CRM strategy and customer performance measures and their relation with performance in the hotel industry in Malaysia. Data were collected through a questionnaire survey of hotels in Malaysia. Hierarchical regression analyses on a sample of 95 hotels revealed that only the information technology dimension of CRM strategy has a signiicant and positive effect on performance. In addition, the hypothesis concerning the role of customer performance measures as a mediator was supported. Keywords: Customer relationship management strategy, customer performance measures, hotels, performance, mediator. JEL Classiication Codes: M41, M31. INtRODUCtION Economically, the tourism industry is the third economic pillar and second largest source of foreign revenue in Malaysia (The Financial Press, 31 st August 2007). As the largest tourism promotion, the Visit Malaysia Year 2007 demonstrated the * Corresponding Author: Email: noraziah@econ.upm.edu.my Any remaining errors or omissions rest solely with the author(s) of this paper.