The Impact of Warehouse Expansion and R&D Investment on the Profitability of Logistics Companies

The rapid expansion of e-commerce has driven logistics companies to expand the size and number of their warehouses and establish efficient delivery networks to respond quickly to orders. This study aims to analyze the tangible impact of warehouse expansion and research and development (R&D) on the profitability of logistics companies. To achieve this, an empirical analysis was conducted using a multiple regression analysis approach on 104 samples in the transportation and warehousing sectors in South Korea from 2014 to 2022. The results indicate that the expansion of warehouse size and number has a positive impact on corporate profitability in the second subsequent fiscal period. Furthermore, the positive effect of warehouse expansion on financial performance was found to be amplified in logistics companies that invested in R&D. These findings suggest that although the costs incurred by logistics companies for warehouse expansion may pose a short-term burden, they generally contribute to profit generation after an average of two fiscal periods.