The Tata Group is at the fifth position among ten best companies for leadership in Asia list, which has been topped by Samsung Group followed by Toyota Motors and Unilever at the second and third position, respectively.
The study said that innovation was the prime factor that made Tata Group to find a place among the top names in Asia. The group's Nano project has been mentioned as a notable breakthrough in the study.
"Leading Asian companies are no strangers to innovation, the key theme of this year's study. Top 10 companies Samsung and Tata, for example, are both notable for recent breakthrough products like the Galaxy Tab tablet computer and the Nano ultra low-cost family car," the study noted.
Others in the top 10 in Asia are: Nestle, IBM Corp, Sony Corp, Procter & Gamble, Coca-Cola and Petronas.
"... Asia's Best Companies for Leadership are better at celebrating innovation and recognising the discretionary effort that helps it to happen. At these companies, trying out new ideas and receiving credit for achievement is twice as likely to happen than at peer firms," Hay Group said.
Among the global best leadership companies, General Electric is at the top, followed by Procter & Gamble, IBM, Microsoft and Coca-Cola.
The study noted that the best companies for leadership create an atmosphere for innovation. Moreover, 90% of Asian companies report their leaders regularly celebrate innovation, compared to just 59% peer companies. In addition 71% of Asian best companies would forego short-term profit to invest in innovation.
Further, employees in 81% of Asia's top 10 companies regularly discuss customers' future needs and negative feedback and problems are seen as opportunities by 77% of Asian best companies.
However, the study also reveals that leadership could still be holding Asian companies back.
"Even in the top 10 Asian companies, you are five times more likely to need formal authority to lead than in a global top 20 company, where almost everyone is expected to lead. Moving away from 'directive' leadership to more delegated decision-making leads to better engagement and motivation, which in turn helps drive innovation," the study noted.
The study includes responses from nearly 7,000 individuals at more than 2,300 organisations across 103 countries.