The development of Chinese corporate management discipline has passed through a process from contextinsensitivity, contextsensitivity to contexteffect and context theorization has become a theoretical breakthrough point based on managerial practice. To advance the research on context theorization, the present article proposes to comprehend the context within which firms operate from the perspective of environment, organization, human interactivity and dynamic evolution. Based on that, the article takes China’s corporate strategic management research as an example to analyze two approaches to context theorization and four capability requirements. It suggests that an investigation of market fragmentation and its contexteffect can be a meaningful attempt to develop Chinese context theorization.