The Cowboys haven't made the playoffs since 2009 and haven't had a winning record the last three seasons.
"I think it's very wrong, because at the end of the day, Jerry Jones is an owner and he has the right to do whatever he wants to do with that ballclub," Smith said on KTBB-FM in Dallas, via The Dallas Morning News.
Smith won three Super Bowls in Dallas and believes consistency is the current problem.
"I know that they're working hard, but I can't put my finger on why they cannot turn the corner," Smith said. "Injuries are something that can plague any team. For us, we've had our share of it. It's frustrating to see that they have so much talent on that football field, yet they cannot come together and execute at the level that they need to execute at for a long period of time. And what I mean by a long period of time, I mean the entire football season.
"Consistency is one of the hallmarks of my career. You knew what you were going to get out of E-Smith every game, every year, no matter if I was 22, 21 or 35 years old. And that's something I look for in every team. Unfortunately for our team, it's almost like a roller-coaster ride."
Follow Kareem Copeland on Twitter @kareemcopeland.