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This paper aims to address key concept of context awareness in the Internet of Things (IoT) domain by providing a model that proactively monitors behaviour of devices and services. This concept represents context into two types of information representation, namely set based and mark-up based ontology for the purpose of defining a context awareness model that accurately represent context in IoT. The context model is defined using Resources, Actors, Ambients and Policies. The model adds value to the next stage of IoT evolution by using context ambients to bring about predictive and proactive modelling in understanding context and context awareness. IoT context is represented using the hierarchical hybrid context model. This model provides a method of representing contexts based on context quality and availability in an entity relation hierarchy form. The model is exemplified using the context management application based on agents. Experimental results indicate that context awareness in the Internet of Things can be enhanced by the proposed model.