Capillary Power in Swiss Finance: The Role of Core and Peripheral Organisations in Interest Defence

Abstract

Over the past decades the Swiss finance industry has faced increasing regulatory scrutiny, leading to disruptions in the sector and new political alliances. In this context, we examine how top financial managers defend their interests. Building on sociological research on corporate power and network ties, we focus organisations that facilitate coordination and the formation of strategic connections. Drawing on BoardEx data, we analyse top managers’ ties to interest groups, political entities, social clubs and broader societal organisations. We demonstrate the structural and dispersed dimensions of the interest defence in Swiss finance by showing that affiliations extend across more than 1,685 local, national and international organisations. This expansive web of affiliations to a vast number of peripheral organisations may enable top managers to disseminate strategic visions to the fringes of the social tissue, and to foster favourable perceptions and legitimacy in the broader society. We argue that interest defence in the Swiss finance industry relies on a distinct form of power, which we refer to as capillary power.