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information technology came to the forefront as a major development innovation that changes that production and managerial process and reduces human effort as well as enhance the effectiveness of the corporations in the era of 4.0 industry. This study intends to identify the effective factors of information technology that are associated with small medium enterprises performance in Iraq. A survey was distributed to 162 SMEs, while a multiple regression was used to analysis. The finding of this research emphases that IT infrastructure (IT connectivity, modularity and personal) has positive effect on firm performance, especially in the readiness for IR 4.0.