Production networks have been established in many industrial domains with globalized supply structures, sourcing strategies or cooperation environments. Knowledge management in such networks requires a context-oriented approach in order to accommodate for individual and organizational needs when providing relevant knowledge for complex tasks, such as value creation. The focus of this paper is on the procedure by which to determine what actually has to be taken into account as part of the ‘context’ for establishing context-oriented knowledge management, how to capture this context, and how to use it. The variability of organisational and individual tasks both at design time and at runtime is essential for understanding context in production networks. The main contribution of the present study is a context modelling method, including variability identification. The application of this method is demonstrated by using an example of a production network from automotive industries.