In Thailand, social problems are increasingly visible due to growing social gaps, and many nonprofit organizations (NPOs) are adopting social innovations to address these issues. With the young and unsettled research field of social innovation, this research aims to explore the process of creating social innovation and how Thai NPOs manage challenges. Therefore, three research questions are examined to identify how the social innovation process is conducted, how leaders interact with related collaborative partners, and external contextual influence. This qualitative research investigated two NPOs, which are Friedrich Naumann Foundation (Thailand office) and Saturday School International volunteer project. Both NPOs have social innovation products or services that are widely implemented in society. Nineteen participants were selected to interview to investigate from three different points of views of manager, co-workers, and partners. This study revealed the process of creating social innovation in NPOs through system theory. Strategic thinking with empathy of the leader helps engage co-workers and stakeholders. Thus, the leader can adjust their management to the situational and socio-political factors. Implications derived from findings are provided for NPOs and leaders.

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