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Information technology (IT) is essential for the long-term survival of construction firm. IT provides construction firms with new opportunities for improving their performance and strategic competitiveness. However, few construction firms have successfully grasped the opportunities enabled by IT, largely due to their limited ability to evaluate the impact of IT on firm performance. Based on data collected form a questionnaire survey and analysis of the responses adopting Structure Equation Modeling (SEM), this paper provides empirical evidence that IT has a positive impact on firm performance. The paper investigates correlated relationship between five perspectives as following: IT utilization, work efficiency, operation management, effect on user, and firm performance. The paper describes the path of IT improving firm performance. The study indicates that IT affects the construction firm performance directly. IT also affects the firm performance indirectly by improving work efficiency and operation management. Surprisingly, IT has a negative impact on employees.