This study explores the utilization level of smart manufacturing systems in the value chain processes of manufacturing and empirically examines the effect of the utilization level of these systems on manufacturing competitiveness in SMEs. Smart manufacturing systems in the value chain processes are categorized into Sales, Purchasing, Production & Logistics, and Support systems. By analyzing the research model using structural equation modeling, this study identifies that Sales systems, Purchasing systems, Production & Logistics systems, and Support systems have a significant impact on manufacturing process efficiency. Additionally, Production & Logistics systems and manufacturing process efficiency positively and significantly influence manufacturing competitiveness. The findings suggest that the utilization of information is directly and positively related to manufacturing process efficiency, including reducing lead-time, decreasing work performance man-hours (M/H), and improving work accuracy. These improvements ultimately have a significant impact on manufacturing competitiveness. In conclusion, the use of smart manufacturing systems is becoming an integral part of the manufacturing industry. To gain a competitive edge, it will be necessary to introduce and utilize optimal smart manufacturing systems, taking into account the size of manufacturing firms.