Objective To study and analyze the role of smart manufacturing technologies in enhancing the production flexibility of industrial enterprises by enabling rapid responses to market and demand fluctuations, minimizing downtime and operational waste, and improving efficiency in resource utilization, thereby contributing to sustainable competitive advantage. Research Design and Methods The article is based on a survey. Data were collected through a survey conducted in electrical and electronic industrial companies in Iraq, which is considered a significant factor in its Production Flexibility. These companies were selected because they primarily implement smart manufacturing technologies and practices. Confirmatory factor analysis was used because it adopted the balanced free least squares method instead of the maximum likelihood method. Findings The research results indicate that smart manufacturing represents a strategic approach enhances the ability of organizations to respond effectively to market fluctuations and demand levels, in addition The results showed that organizations that adopt smart manufacturing have greater organizational flexibility and productivity compared to traditional organizations, which positively impacts their ability to cope with uncertainty in the business environment. Implications and Recommendations Industrial organizations are encouraged to invest in smart manufacturing technologies such as artificial intelligence, the Internet of Things, and predictive analytics to enhance production flexibility. In addition, organizations should focus on building human capabilities through continuous employee training and technological qualification programs to improve readiness for digital transformation. Contribution and Value Added While previous studies have not quantified The Role of Smart Manufacturing in Supporting Production Flexibility in Light of Market and Demand Fluctuations in industrial companies, this article makes an important contribution by providing empirical evidence on how industrial companies view their policies as a useful tool in meeting their needs when providing support and assistance for the flexibility of its production processes in industrial companies.