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Several recalls of dietary supplements and infant formula not only caused direct economic loss to processors but also created distrust of food traceability systems(FTSs) initiated by government. In Korea, mandatory FTS regulations on infant formula and dietary supplements were enacted at the end of 2014, allowing the government to collect electronic traceability data to cope with food outbreaks. The aim of this study is to examine the influence and process of latent factors by developing a theoretical model and testing empirical data from the Korean processed food sector. The particular value of this study is to identify the latent factors influencing the diffusion of an electronic FTS. Three external factors (organizational adaptability, validity and awareness of FTS) were incorporated into a technology acceptance model (TAM) based on previous studies, and structural equation modeling (SEM) was used as a tool for confirmatory analysis. The validity of FTSs has a prominent effect on attitudes toward FTSs and compliance intentions. Contrary to the findings of previous studies, organizational adaptability does not influence a positive effect on attitudes toward FTS. Furthermore, subgroup analysis showed that retailers reacted significantly to the different influences than manufacturers. The findings of this paper have implications for both policy makers and regulatory authorities. The results of this theoretical and practical study contribute to establishing a conceptual framework and motivate additional researches on FTS adoption and diffusion in processed food sectors. [ABSTRACT FROM AUTHOR]