I am trying to create a mediation model for:
X1=employee capability; X2 (Mediator)=Company capability; Y= employee earnings
Although, I am not sure if I can still say that this will be a mediation model when I believe and support that X1 and X2 have reciprocal relation. Where, employee capability (X1) explains the company capability (X2) and vice-versa then both affect employee earnings(Y).
First, is this considered a usual mediation model?
Second, whatever model it will be, how do I proceed with the analysis/process?
Thanks.
