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Demand for express parcel delivery has been greatly increasing in South Korea due to the growth of B2C e-commerce activities. It is imperative that parcel carriers have good insights into the performance of their distribution networks with different levels of demand and plan ahead for the adaptations in order to be able to meet future changes in demand. This paper proposes a framework to evaluate the likelihood of parcels arriving on-time to their destinations (local service reliability) with a strong focus being placed on their spatial distribution. The resulting maps of local service reliability allow us to identify specific locales that would suffer the most from a capacity overflow in the networking system, thus pointing to areas that need immediate attention. Furthermore, this paper attempts to identify potential factors which could affect the spatial variation of local service reliability.

The authors use signaling theory in proposing a conceptual framework that simultaneously incorporates both the mediating effects of corporate reputation (CR) and the moderating effects of marketing capability (MC) into the corporate social responsibility (CSR)–corporate financial performance (CFP) link and theorize a single moderated mediation model. The empirical results of the research confirm the theorized moderated mediation model among the four variables, where a firm’s CR plays a mediating role in the relationship between CSR and CFP, and a firm’s MC moderates the effect of CSR on CR exclusively in the first link. Both theoretical and practical implications of the moderated mediation model are discussed.

This study uses structural equation model estimations with the relevant secondary datasets collected from publicly available databases.

The empirical results confirm the theorized moderated mediation model in the conceptual framework that uses signaling theory. Specifically, the results identify the moderating role of MC in only the CSR- CR link (but not in the CR and CFP link), such that CR plays a moderated mediation role in the CSR–CFP link.

The current research is not without limitations. These limitations mainly stem from data sets used in the empirical analyses. More details are discussed in the limitations and future research directions section.

The empirical findings suggest that a firm needs to develop a consolidated CSR-marketing program, simultaneously satisfying stakeholders’ needs for both the firm’s socially desirable business practices and value-creating marketing programs to increase its CR, which will, in turn, lead to better profitability for the firm.

To the best of the authors’ knowledge, the current research is the first to use signaling theory in building a conceptual framework that theorizes a moderated mediation model regarding the simultaneous effects of CR and MC on the relationship between CSR and CFP and to empirically test this conceptual framework of the single moderated mediation model. By doing so, the current research clarifies an unanswered question in the literature of whether the underlying mechanism in the CSR–CFP link is based on a mediated moderation or moderated mediation of CR and MC.

The purpose of this paper is to study how cost efficiency and the reliability of a physical distribution network are affected by changes in online shopping demand and to suggest how logistics service providers can respond to such changes.

Based on a discrete event simulation approach, possible adaptive measures to online shopping demand increase are tested at three levels of decision making in parcel distribution network: priority assignment in the main hub (operational), introduction of sub‐hubs (tactical), and increase in the hub‐terminal capacity (strategic). The feasibility of the simulation is tested with parameters adopted from the logistics service data of an existing major parcel carrier in South Korea.

Findings from the simulation model suggest that the existing physical distribution network can improve its cost efficiency and service reliability by evolving into a more centralized network structure with increased capacity of transshipment facilities if the online shopping demand is expected to increase consistently over the long run.

This research will help logistics service providers to have good insights into performances of their distribution networks at different levels of demand and to devise a plan for adaptation to meet future demand.

This paper provides a framework to understand the complex relationship between network configurations, service levels, costs, and other decision‐making processes with respect to changes in online shopping demand based on a simulation approach.