The main subject of this study was to look into the relationship between workplace friendship and employee demographics on team effectiveness in the case of a Filipino family business. The study particularly aimed to determine if an inverted-U relationship exists between workplace friendship and team effectiveness and determine if demographics such as age, gender, educational level, and tenure moderated the relationship between workplace friendship and team effectiveness. Online questionnaires were distributed to employees of a local family business. The questionnaire included twenty-five 5-point Likert scale questions to collect data on workplace friendship and team effectiveness. Quadratic regression was done to detect the inverted-U relationship, and a moderated regression analysis was carried out to see if demographics moderated the relationship. The study found that an inverted-U relationship exists between workplace friendship and team effectiveness. This finding suggests that team effectiveness increases as workplace friendship increases. Then the relationship reaches a maximum point after which team effectiveness decreases at an increasing rate. This study also found that demographics do not significantly affect the relationship between workplace friendship and team effectiveness. Due to quarantine restrictions in Metro Manila, the sample size used for analysis was low. Therefore, it is recommended that a similar exercise be conducted on a bigger scale and involve several local companies to validate the above findings further.
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