Kuuki-wo-yomu (KWY) holds particular importance in Japanese society. Literally meaning ‘reading the air,’ KWY refers to attitudinal and behavioral patterns that Japanese exhibit in social groups. Noting its conceptual importance, the study intends to theorize KWY. Adopting the contextualization approach, the study explains the emergence and its structure of KWY through a thorough investigation of Japanese society and organization. A three-stage survey was conducted on 158 Japanese employees and analysis of the results indicates that KWY is perceived as an important capability. Specifically, KWY is composed of three subdimensions: (1) perception, comprising the awareness of one’s surroundings, including people, norms and rules, and implicit social contexts; (2) attitude, comprising consideration, conformity, responsibility, and maintenance of harmony; and (3) behavior, comprising flexibility, cooperation, and proactivity. This study’s novel research approach has theoretical and practical implications, and we hope it will foster follow-up studies to develop Japan-grounded behavioral concepts and theories.