This study proposes a new approach to the transitivity variation of the Mandarin Verb-Object (VO) compound by focusing on the role of the potential objects instead of the incorporated object. This new approach highlights the interactions between language change and variation. Previous approaches to the transitivity variation of VO compounds, especially Mandarin Chinese VO compounds, have typically focused on the purported blocking effect of the incorporated object (O). Recent corpus-driven studies, however, have attested that Mandarin VO compounds can take objects. This study compared clausal contexts in two Chinese varieties when VO compounds take direct objects and showed that the same noun phrase tends to require a context of higher transitivity to function as a direct object in the Mainland variety, complementing the previously established tendencies that Taiwan Verb-Object compounds have higher object-taking abilities. Both changes and variations can be interpreted as lexical constructionalization, supplemented with insights from noun incorporation and lexical diffusion. Argument advancement after compound formation represents lexical constructionalization, motivated by a tendency to encode transitivity with less compositionality. The contrasting contextual and lexical transitivity trends in the two varieties support the shifting encoding of transitivity generalization, illustrating different stages of lexical constructionalization.